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Unformatted text preview: minus the purchase of domestic assets by foreigners. 11. Nominal exchange rate -the rate at which a person can trade the currency of one country for the currency of another. 12. Appreciation- an increase in the value of a currency as measured by the amount of foreign currency it can buy. 13. Depreciation -a decrease in the value of a currency as measured by the amount of foreign currency it can buy. 14. Real exchange rate -the rate at which a person can trade the goods and services of one country for the goods and services of another. 15. Purchasing -power parity - a theory of exchange rates whereby a unit of any given currency should be able to buy the same quantity of goods in all countries....
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This note was uploaded on 10/19/2010 for the course ECON 201 taught by Professor Coomber during the Spring '08 term at Community College of Baltimore County.
- Spring '08