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Explain the consequences of the increasing integration of the global economy.
Nominal Interest Rate
The interest rate actually paid for a loan, not adjusted for inflation.
Hyperinflation
A very high and typically accelerating rate of inflation, often exceeding 50% per month, leading to a rapid erosion of real value in the local currency.
Depression
A severe and prolonged downturn in economic activity, characterized by significant declines in GDP, high unemployment, and deflation.
Money Demand
The total amount of money that households and businesses want to hold at any given time, depending on interest rates, income levels, and economic activity.
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