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Discuss the primary conflict-handling intentions.
Real Exchange Rate
The rate at which two different currencies can be exchanged, taking into account their respective purchasing power.
Nominal Exchange Rate
The rate at which one currency can be exchanged for another currency, without adjustment for inflation.
Purchasing-Power Parity
An economic theory that compares different countries' currencies through a "basket of goods" approach, to assess the relative value of each currency.
Inflation Rate
An upward shift in the overall price levels of goods and services within an economy throughout a specified period.
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