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The diamond-water paradox occurs because
Consumer Price Index
A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, often used as an indicator of inflation.
Nominal Interest Rate
The interest rate before adjustments for inflation, indicating the basic rate at which interest is paid or earned.
Real Interest Rate
The interest rate that has been adjusted for inflation, showing the real cost of funds to the borrower and the real yield to the lender.
Social Security
A government program designed to provide financial assistance and support to people with inadequate or no income, primarily the elderly, disabled, and families with dependent children.
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