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Module 28

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Module 28

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The Money Market - Fill-in-the-Blank (Part 2)

Created by

Zachary Foust
Zachary Foust
United States

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Module 28
 

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Module 28Online version

The Money Market - Fill-in-the-Blank (Part 2)

by Zachary Foust
1

The liquidity preference model of the interest rate says that the interest rate is determined by the and for money .

The money supply curve ( MS ) show the relationship between the quantity of money supplied by a and the interest rate .

A central bank can increase or decrease the .

Central banks usually increase or decrease the money supply through - , which are the buying or selling of Treasury bills .

To increase or decrease the money supply , central banks can also via the discount window .

Central banks can change to increase or decrease the money supply .

Money market equilibrium is where MS and MD .

 
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