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Hal is an Apple computer enthusiast who reads magazines, has an iPad, iPod and an Apple TV at home. When it comes to Apple products, it can be said that Hal is exhibiting situational involvement.
Nominal Exchange Rate
The rate at which one currency can be exchanged for another currency, without adjusting for inflation differences between the two countries.
Real Exchange Rate
A measure that compares the relative price of a basket of goods between two countries, adjusted for currency exchange rates.
Basket Of Goods
A set of products and services, considered a representative sample, used to measure the change in overall price levels over time, such as in the calculation of inflation.
Purchasing-Power Parity
An economic theory that states that the exchange rate between two currencies is equal to the ratio of the currencies' respective purchasing powers.
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