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Regular exercise
Fisher Effect
The one-for-one adjustment of the nominal interest rate to the inflation rate
Inflation
A sustained increase in the general price level of goods and services in an economy over time, leading to a decrease in the currency's purchasing power.
Nominal Interest Rate
The stated interest rate without adjustment for inflation, representing the actual percentage paid or earned.
Open Market Sales
Operations by a central bank to sell securities in the open market to decrease the money supply in the economy.
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