Tuesday, March 24, 2015

Demand for Money

Demand for Money had an inverse relationship between nominal interest rate and the quantity of money demanded


  1. What happens to the quantity demand of money when interest rates increase, it DECREASES
  2. What happens to the quantity demand when interest rates decreases, it INCREASE
Fiscal 
  • Congress, the president
  • tax or spend
Monetary 
  • The FED (Federal Reserve Bank)
  • OMO
  • Discount Rate
  • Federal Fund Rate
  • Reserve Requirement 
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2 comments:

  1. UnknownMarch 30, 2015 at 11:04 AM

    Noting that there is an inverse relationship between nominal interest rate and the quantity of money demanded was very helpful, as was stating what happens to the quantity of money demanded when interest rates increase and decrease. The inclusion of the graph helped but i would have obtained a better understanding had you explained the graph

    ReplyDelete
  2. UnknownMarch 30, 2015 at 11:04 AM

    Noting that there is an inverse relationship between nominal interest rate and the quantity of money demanded was very helpful, as was stating what happens to the quantity of money demanded when interest rates increase and decrease. The inclusion of the graph helped but i would have obtained a better understanding had you explained the graph

    ReplyDelete

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