Increases in these quantities are related to increases in productivity by the BalassaÂ–Samuelson effect.
Increases in these quantities are related to increases in productivity by the BalassaÂ–Samuelson effect. In a so-called "crawling" restriction, fluctuations in these quantities are limited to a specific band of values through the use of open market transactions. Building on the "law of one price," these quantities are brought in line with the prices of baskets of goods in different locations under the assumption of (*) purchasing power parity. Countries seeking to promote exports, like China, often deliberately depress these quantities, whose black market value - as in Venezuela - often deviates radically from values set formally by a government under a peg. For 10 points, identify these quantities which give the value of one currency in terms of another.
Increases in these quantities are related to increases in productivity by the BalassaÂ–Samuelson effect.
exchange rates [accept currency prices until "currency" is read; accept prices alone on the first clue and prompt thereafter; prompt on terms of trade or terms of exchange or price of money; do not accept or prompt on "money" alone] 