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Everything else held constant,in the market for reserves,when the federal funds rate is 1%,increasing the interest rate paid on excess reserves from 1% to 2%
Total Surplus
The total net gain for society from producing and consuming a good, encapsulated by the addition of consumer surplus and producer surplus.
Profit Maximization
The technique a firm applies to set the price and production level for the best profit return.
Price
The sum of money needed to buy a product, service, or asset.
Quantity
The quantity of a tangible or intangible product or service.
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