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Interest Rate
The expense, quantified as a percentage of the principal, charged by a lender to a borrower for the use of resources.
Demand for Money
The desire to hold cash or easily liquidable assets, influenced by interest rates, income levels, and economic activity.
Contractionary Monetary Policy
A form of monetary policy that aims to reduce the rate of monetary expansion to tackle inflation, often by increasing interest rates.
Aggregate Demand
All-encompassing demand for goods and services within an economic framework, fixed at a particular price point and time frame.
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