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On the day she is to be interviewed for an important new position,Rachel awakens with a severe toothache.During the interview she feels no pain;not until 30 minutes later does she become aware again of the troublesome toothache.Rachel's experience is best explained by
Money Supply
The money supply is the total amount of money—cash, coins, and balances in bank accounts—in circulation within a country's economy at a given time.
Discount Rates
Discount rates refer to the interest rate charged to commercial banks and other financial institutions for loans received from the central bank's discount window.
Federal Funds Rate
The interest rate banks and other depository institutions charge one another on overnight loans made out of their excess reserves.
Borrowed Reserves
Funds that commercial banks borrow from the central bank to meet reserve requirements, often indicative of a tight monetary policy.
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