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What is the difference between federal purchases and federal expenditures?
Foreign-Currency Exchange
The system through which currencies are traded and exchanged at determined rates, enabling international trade and investments.
Nominal Exchange Rate
The rate at which a person can trade the currency of one country for the currency of another.
Real Interest Rate
The inflation-adjusted interest rate, signifying the actual cost of borrowing and the genuine return for investors.
Net Capital Outflow
The net flow of funds used for investment in foreign countries minus the flow of funds from foreign investments into the domestic market.
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