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International Trade and Aggregate Demand

Author: Kate Eskra
Video Transcript
Terms to Know
Exchange Rates

The cost of one country’s currency relative to another’s.

Exports

Goods and services sold and transported outside a country of origin to a foreign country.

Float/Peg

A mechanism for exchange rate pricing; a floating rate moves with market forces; a pegged rate is a maintained value of a currency where the value is maintained by a central banking of foreign exchange regulating body and is typically defined in a range.

Imports

Goods and services brought in to a country and produced by foreign nationals.