Question
How does a real exchange rate differ from a nominal exchange rate?
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Answer
Real rate adjusts for relative price levels; nominal rate does not.
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Question
How do leading economic indicators differ from coincident indicators?
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Answer
Leading turn before the economy; coincident turn with it.
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Question
Why is the Herfindahl-Hirschman Index more sensitive to dominance than CR?
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Answer
Because it squares market shares.
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Question
Under interest rate parity, what happens to the low-interest-rate country's currency in the forward market?
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Answer
It trades at a forward premium.
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