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In a two-nation model, the equilibrium world price will occur where:
Real Rate of Return
The rate of return on an investment after adjusting for inflation, representing the actual growth in purchasing power.
Corporate Stocks
Equity stakes in corporations, allowing ownership and potentially receiving dividends.
Treasury Bonds
Long-term investment instruments issued by the government that pay periodic interest until expiration, at which point the face value is paid to the investor.
Treasury Bills
Short-term government securities issued at a discount from par value and mature without interest payments, offering a return upon maturity.
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