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Question 18 / 96:  What's the difference between direct and indirect exchange?
Answer: 

In direct exchange, both parties plan on using (either for consumption

or production) the item they obtain through the

trade. In indirect exchange, at least one of the parties plans on

trading away the item obtained through the trade.
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Capitalism: The Market Economy

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Attribution:  Dr. Robert P. Murphy, Lessons for the Young Economist. (Mises Institute), http://mises.org/document/6215/Lessons-for-the-Young-Economist (Accessed 04 April, 2014). License: Creative Commons BY
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