Money demand & supply

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Intros
Lessons
  1. 4 Factors for the Quantity of Money
    • Price Level
    • Real GDP
    • Nominal Interest Rate
    • Financial Innovation
  2. Money Demand Curve
    • Demand for quantity of real money
    • Real GDP \, \uparrow \, \, Money Demand \, \uparrow \,
    • Real GDP \, \downarrow \, or Financial Innovation \, \, Money Demand \, \downarrow \,
  3. Money Supply Curve
    • Supply for quantity of real money
    • Banks & Fed control supply
    • Money Supply \, \uparrow \, \, Shift right
    • Money Supply \, \downarrow \, \, Shift left
    • Given Time period
  4. 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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Examples