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Explain the law of comparative advantage.
Deposit Multiplier
The ratio that measures the potential impact of a change in banking reserves on the money supply, indicating how much money banks can create with each dollar of reserves.
Fed Funds Rate
The interest rate at which depository institutions lend reserve balances to other depository institutions overnight, a vital monetary policy tool used by the Federal Reserve.
Discount Rate
The rate at which the central bank lends money to commercial banks and other financial institutions through its discount window.
Open Market Operations
Open Market Operations involve the buying and selling of government securities by a central bank to control the money supply and interest rates in the economy.
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