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The Fed buys securities and gives the bank a check for the amount. After the check has cleared,
Consumption
The act of using goods and services to satisfy needs or wants.
Income
Financial gain derived from various sources such as employment, investments, or proprietorship, contributing to an individual's wealth.
Price
The monetary cost anticipated, called for, or disbursed in payment for an object.
Compensating Variation
An economic concept representing the amount of additional income an individual would need to maintain the same level of utility after a price change.
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