Examlex
As a theory of exchange rate determination,Purchasing Power Parity is the observation that exchange rates reflect the differences between nominal interest rates in different countries.
Free Rider
An individual who benefits from resources, goods, or services without paying for them, leading to an economic problem in public goods and services provision.
Agency Problem
A conflict of interest inherent in any relationship where one party is expected to act in another's best interests.
Horizon Problem
A situation where the time horizon for decision making by managers is shorter than the long-term interest of the company, often due to differing objectives.
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