Examlex
Explain the cohesion-tension theory.
Real Interest Rates
Real interest rates are the interest rates adjusted for the effects of inflation, reflecting the true cost of borrowing and the true yield on savings.
International Fisher Effect
A theory that describes the relationship between interest rates and currency exchange rates, asserting that differences in interest rates between two countries will result in an equal change in exchange rates.
Interest Rate Parity
A theory explaining the relationship between interest rates and the exchange rate between two currencies.
Gilts
Government bonds issued by the United Kingdom, considered low-risk investments.
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