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Describe and explain the relationship between expected inflation rates in two countries and their interest rate differential according to the PPP theory.
Disposable Income
Post-tax financial resources available for household spending and savings.
Savings
The portion of income that is not spent on consumption or taxes, typically put aside for future use or investments.
Disposable Income
Income available for spending and saving after income taxes have been accounted for.
C + I
An economic formula representing consumer spending (C) plus investment spending (I), components of a country's GDP calculation.
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