Examlex
Purchasing power parity means that the expected exchange rate is such that the returns from investing in two nations are equal.
Nominal Exchange Rate
The rate at which the currency of one country can be exchanged for the currency of another country, not adjusted for inflation.
Net Exports
The value of a country's total exports minus its total imports, representing the net amount of a nation's goods and services traded with the rest of the world.
Appreciates
Refers to an increase in the value of an asset or currency relative to another.
Money Demand Curve
A graph showing the relationship between the quantity of money people want to hold and the interest rate.
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