Money demand & supply
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Intros
Lessons
- 4 Factors for the Quantity of Money
- Price Level
- Real GDP
- Nominal Interest Rate
- Financial Innovation
- Money Demand Curve
- Demand for quantity of real money
- Real GDP → Money Demand
- Real GDP or Financial Innovation → Money Demand
- Money Supply Curve
- Supply for quantity of real money
- Banks & Fed control supply
- Money Supply → Shift right
- Money Supply → Shift left
- Given Time period
- Short-Run & Long-Run Equilibrium
- Intersection of demand and supply
- Supply Curve Shifts right → decrease interest rate
- Supply Curve shift left → increase interest rate
- Demand curve shift right → increase interest rate
- Demand curve shift left → decrease interest rate
- Long-Run → no changes, only price level
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