________ necessitate the existence of a market- the foreign exchange market- where currencies can be swapped for one another.
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power parities
Purchasing ________ are commonly calculated by estimating the cost of purchasing broad market baskets comprising a variety of products and services, such as autos and food, as well as housing and telephone calls.
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Exchange rates
________, or the prices at which currencies trade, are determined by this market.
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Debtors
Countries that owe money to the rest of the world
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Creditors
Countries that owe money to the rest of the world) (countries to which the rest of the world owes money
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equilibrium exchange rate
The term, ________, refers to the exchange rate at which the quantity of U.S. dollars demanded in the foreign exchange market is equal to the quantity of U.S. dollars supplied.
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Flashcard (42)