Price Changes and Exchange Rates - Terminology and basic concepts
3 important questions on Price Changes and Exchange Rates - Terminology and basic concepts
Price changes and exchange rates - A[Valuta]
Give the definition of A[Valuta]
Actual Valuta
The number of valuta associated with a cash flow (or non-cash-flow) as the time it occurs.
The number of valuta associated with a cash flow (or non-cash-flow) as the time it occurs.
Price changes and exchange rates - f
Give the definition of f
General price inflation rate
A measure of average change in the purchasing power of a valuta during a specific period of time.
A measure of average change in the purchasing power of a valuta during a specific period of time.
Price changes and exchange rates - ir
Give the definition of ir
Real interest rate
The money paid for the use of capital, normally expressed as an annual rate (%) that does not include a market adjustment for the anticipated general price inflation rate in the economy. Inflation-free interest rate.
The money paid for the use of capital, normally expressed as an annual rate (%) that does not include a market adjustment for the anticipated general price inflation rate in the economy. Inflation-free interest rate.
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