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Equilibrium Exchange Rate
The exchange rate at which the supply of a currency equals its demand in the foreign exchange market, leading to a stable market condition without the need for intervention.
Internationally Traded Goods
Products and services that are sold and bought across national borders, subject to international trade regulations and agreements.
Purchasing Power Parity
An economic theory that compares different countries' currencies through a "basket of goods" approach to determine their relative value.
Exchange Rate
The exchange value of one currency against another.
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