https://www.youtube.com/watch?v=YLsrkvHo_HA&feature=results_video&playnext=1&list=PL2CB281D126F65E26
There is 3 types of money commodity, representative, and fiat money. Commodity money is an item that is worth something and can be used for exchange like in the video a cow is used as an example. Representative money is one that is backed up by a mineral such as gold or silver which most have gotten rid of this system since the mineral fluctuate in price, so is the worth of the money. Lastly is fiat money which is what we used today. This money works just because the government says so. In the next part, we break down the functions of money which are medium of exchange, store of value, and unit of account.
https://www.youtube.com/watch?v=gzFdeM6lUno&feature=bf_prev&list=PL2CB281D126F65E26&lf=results_video
The interest rate is the y-axis on the money market graph. The x-axis is QM which stands for quantity of money. DM or demand for money is diagonal towards the floor. Supply of money is vertical on the graph because it does not vary because of interest rate. Increase of money supply is to the right and decrease is to the left. It is the same with demand.
https://www.youtube.com/watch?v=rdM44CC0ELY&feature=bf_next&list=PL2CB281D126F65E26&lf=results_video
Interest rate is the y-axis. The x-axis is the QLF or quantity of loanable funds. The supply of loanable funds is from the amount that people have in the bank which means it is dependent on savings. Increase in demand in money market causes an increase in demand in loanable funds. Shift demand in loanable funds so it has the same interest rate was money market. You have to show that you change the interest rates.
https://www.youtube.com/watch?v=rdM44CC0ELY&feature=bf_next&list=PL2CB281D126F65E26&lf=results_video
Banks create money by making loans. The feds can control monetary policy by changing the reserve requirement ratio. The monetary multiplier equation is 1/RR. The amount we figured out for the loans is assuming that we have no excess reserves in the bank.
https://www.youtube.com/watch?v=k37Y6BKcpsY&index=8&list=PL2CB281D126F65E26
Remember to label your graphs and don't assume that the reader knows what you are talking about. If the government borrows money, the demand changes. Start with the money market graph and also remember to draw arrows to show the shift. If it is a change in demand, then continue with demand and make sure the interest rate is the same. The change in supply of money affects the price level. This is the Fisher Effect.
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