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EQUILIBRIUM, AGGREGATE MARKET: The state of the aggregate market in which real aggregate expenditures are equal to real production, which means that the price level, aggregate expenditures, and/or real production do not change. In other words, the opposing forces of aggregate demand (the buyers) and aggregate supply (the sellers) are in balance.

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Lesson 19: Money Creation | Unit 5: Policy Page: 22 of 23

Topic: Reserves <=PAGE BACK | PAGE NEXT=>

A second method of controlling the money creation process is to control reserves directly.

Remember that:

  • The Federal Reserve maintains a system of deposits for commercial banks.
  • Banks keep deposits with the Federal Reserve to process checks.
A side effect:
  • The Federal Reserve can add to or subtract from these deposits, and change reserves.
Therefore:
  • If the Federal Reserve adds reserves, banks can create more money.
  • If the Federal Reserve reduces reserves, banks can create less money.

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NATURAL RESOURCES

The naturally occurring resources that are naturally a part of our natural planet which are directed toward production--including land, water, wildlife, vegetation, air, climate, sunshine, mineral deposits, and soil nutrients. Natural resources provide the materials that are used to produce all tangible products in the economy.

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APLS

ORANGE REBELOON
[What's This?]

Today, you are likely to spend a great deal of time flipping through mail order catalogs looking to buy either a remote controlled train set or a genuine down-filled snow parka. Be on the lookout for gnomes hiding in cypress trees.
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This isn't me! What am I?

A U.S. dime has 118 groves around its edge, one fewer than a U.S. quarter.
"Good judgment comes from experience, and often experience comes from bad judgment."

-- Rita Mae Brown ‚ Writer

DCF
Discounted Cash Flow
A PEDestrian's Guide
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