Examlex
Match each word part meaning with its correct word part.
-Clotting
Nominal Exchange Rate
The rate at which one currency can be exchanged for another currency, without adjusting for inflation differences between the two countries.
Real Exchange Rate
A measure that compares the relative price of a basket of goods between two countries, adjusted for currency exchange rates.
Basket Of Goods
A set of products and services, considered a representative sample, used to measure the change in overall price levels over time, such as in the calculation of inflation.
Purchasing-Power Parity
An economic theory that states that the exchange rate between two currencies is equal to the ratio of the currencies' respective purchasing powers.
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