No Bull Economics Lessons

Macroeconomics & Microeconomics Concepts You Must Know

Money Market Graphs

Back>>>Every graph you need to know for the AP Macroeconomics Exam











Summary: The trick with drawing the Money Market is to remember that the supply of money is always vertical since it is set by Fed policymakers. If the Federal Reserve decides to buy/sell bonds, raise/lower reserve ratio, or raise/lower the discount rate then the supply of money will shift. If the Fed does nothing and consumer decisions change as a result of current economic conditions then you want to shift the demand for money instead. Also, make sure interest rates are nominal on the vertical axis.

Back>>>Every graph you need to know for the AP Macroeconomics Exam

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