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Explain How the Relation Between the Real Exchange Rate and Net

question 123

Essay

Explain how the relation between the real exchange rate and net exports explains the downward slope of the demand curve for foreign-currency exchange.


Definitions:

Quasi-Contract

A legal concept where the court imposes a contractual obligation on a party who has not actually entered into a contract, to prevent unjust enrichment.

Mutual Assent

In contract law, the state of mind that exists between an offeror and an offeree once a valid offer has been accepted and once the parties know what the terms are and have agreed to be bound by them. Also known as “a meeting of the minds.”

Unenforceable Contract

A contract that cannot be upheld by a court because of some rule of law.

Complete Contract

A contract that outlines all the relevant and necessary conditions and terms of the agreement between parties for a particular transaction or arrangement.

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