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Figure 1.2
Using the figure above, identify the labeled part.
-Label R: ______________________________
Price of a Dollar
A term not commonly used in economics or finance, potentially confusing but might refer to the value of the US dollar in terms of foreign currency exchange rates.
Trade Flow
Refers to the movement of goods and services between countries, indicating the import and export activities.
Exchange Rates
The value of one currency for the purpose of conversion to another; it determines how much of one currency can be exchanged for another currency.
Free Market
An economic system where prices for goods and services are determined by the open market and consumers, free from government intervention.