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Which approach is most appropriate if the purpose of the regression analysis is forecasting?
Net Capital Outflow
The difference marked by domestic people's foreign asset purchases compared to foreign people's domestic asset acquisitions.
Software
Programs and other operating information used by a computer to perform specific tasks.
Real Exchange Rate
The pace at which one country's currency can be swapped for that of another, after accounting for inflation.
Nominal Exchange Rate
The rate at which one currency can be exchanged for another currency, not adjusted for inflationary differences between the two currency areas.
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