Examlex
If demand is perfectly inelastic, the demand curve is vertical, and the price elasticity of demand equals 0.
Identical Products
Goods that are exactly the same in every feature, quality, and specification, allowing them to be interchangeable.
Absolute Purchasing Power Parity
A theory that suggests that in the absence of trade barriers and transportation costs, identical goods will have the same price in different countries when prices are expressed in a common currency.
Covered Interest Arbitrage
A financial strategy to profit from the difference in interest rates between two countries while hedging against exchange rate risks.
Spot Rate
The current market price at which a particular asset, such as a currency, commodity, or security, can be bought or sold for immediate delivery.
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