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Imagine you have a friend who is typically quiet, thoughtful, and reserved. However, when your friend drinks, you can never tell what she is going to do. One minute your friend is dancing wildly and having a great time, but the next minute she is reacting aggressively to being slightly nudged by another dancer. Describe two reasons presented in the text for why alcohol would have such an effect on your friend.
Money Supply
The total amount of monetary assets available within an economy at a specific time, including cash, coins, and balances held in bank accounts.
Price Level
The broad-based average price across the spectrum of goods and services in the economy.
Real Income
Income of individuals or nations adjusted for inflation, reflecting the actual purchasing power.
Velocity of Money
The rate at which money is exchanged from one transaction to another and used to purchase goods and services, reflecting the economy's activity level.
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