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Figure: Supply Shift In the figure, the supply curve shifted from S0 to S1. To describe this movement, we would say that:
Opportunity Cost
The cost attributed to the refusal of the immediately lesser appealing option during decision-making.
Target Rate
A target interest rate set by the central bank in a country that guides monetary policy decisions, aiming to control inflation, encourage borrowing, or stabilize the economy.
Inflation
A measure of the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.
Money Supply
A comprehensive sum of money in an economy at any given point, covering cash, coins, and the funds maintained in demand and savings deposits.
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