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Spending Multiplier
The spending multiplier is an economic concept that measures the effect of a change in autonomous spending (such as government expenditure or investment) on the total economic output.
Potential Output
Potential Output refers to the highest level of goods and services an economy can produce sustainably, without triggering inflation.
Government Securities
Government-issued securities designed to fund government spending while providing investors with a profit.
Discount Rate
The interest rate charged by central banks on loans they provide to commercial banks, influencing monetary policy and the money supply.
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