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Fed Buys Bonds
An action by the Federal Reserve to purchase government securities from the market to increase the money supply and lower interest rates.
Money Supply
The aggregate financial resources within an economy at a given point in time, including cash, coins, and the balances maintained in checking and savings accounts.
Aggregate Demand
The aggregate need for all products and services across an economy at different pricing points, during a defined timeframe.
Nominal Variables
Economic variables measured in monetary terms without adjustment for inflation, reflecting their value in current prices.
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