Sunday, March 29, 2015

Video 6

http://www.youtube.com/watch?v=k37Y6BKcpsY&feature=bf_next&list=PL2CB281D126F65E26&lf=results_video

         In the 6th video, the discussed about money market, loanable funds, and the AD-AD graphs. They should all be side by side in order to see the change in demand or supply. The MV should always be equal to PQ. Increasing interest rate drives an increase in price level, they call this the fisher effect. The walker effect explains how for every cookie you eat, thats one less cookie.

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