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The aggregate-demand curve is downward-sloping because of Pigou's wealth effect, Keynes's interest-rate effect, Mundell-Fleming's exchange-rate effect and Veblen's envy effect.
Fair Value
The estimated market value of an asset or liability, based on current market conditions and comparable transactions, used in financial reporting to provide a clear picture of a company’s financial health.
Exchange Rate
An exchange rate is the value of one currency expressed in terms of another currency, used to convert different currencies for trade and financial transactions.
Financial Position Date
A specific date on which the financial state of an entity is assessed, encompassing its assets, liabilities, and equity positions.
Cash-flow Hedge
A form of hedge that protects against the variability in cash flows resulting from changes in currency rates, interest rates, or commodities prices.
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