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Using Boundless Presentations The Appendix The appendix is for you to use to add depth and breadth to your lectures. You can simply drag and drop slides from the appendix into the main presentation to make for a richer lecture experience. Free to edit, share, and copy Feel free to edit, share, and make as many copies of the Boundless presentations as you like. We encourage you to take these presentations and make them your own. Free to share, print, make copies and changes. Get yours at Boundless Teaching Platform Boundless empowers educators to engage their students with affordable, customizable textbooks and intuitive teaching tools. The free Boundless Teaching Platform gives educators the ability to customize textbooks in more than 20 subjects that align to hundreds of popular titles. Get started by using high quality Boundless books, or make switching to our platform easier by building from Boundless content pre-organized to match the assigned textbook. This platform gives educators the tools they need to assign readings and assessments, monitor student activity, and lead their classes with pre-made teaching resources. Get started now at: If you have any questions or problems please

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The Demand for Money Shifts in the Money Demand Curve The Equilibrium Interest Rate Introduction to Monetary Policy Monetary Policy > Introduction to Monetary Policy Free to share, print, make copies and changes. Get yours at m_medium=direct&utm_source=boundless

Free to share, print, make copies and changes. Get yours at Appendix

Key terms asset Something or someone of any value; any portion of one's property or effects so considered. equilibrium The condition of a system in which competing influences are balanced, resulting in no net change. interest rate The percentage of an amount of money charged for its use per some period of time (often a year). money supply The total amount of money (bills, coins, loans, credit, and other liquid instruments) in a particular economy. nominal interest rate The rate of interest before adjustment for inflation. Free to share, print, make copies and changes. Get yours at Monetary Policy

Federal Funds Rate This graph shows the fluctuations in the federal funds rate from The Federal Reserve implements monetary policy through the federal funds rate. Free to share, print, make copies and changes. Get yours at Wikipedia. "Federal Funds Rate 1954 thru 2009 effective." CC BY-SA View on Boundless.comCC BY-SAhttp://en.wikipedia.org/wiki/File:Federal_Funds_Rate_1954_thru_2009_effective.svgView on Boundless.com Monetary Policy

Shift of the Demand Curve The graph shows both the supply and demand curve, with quantity of money on the x-axis (Q) and the price of money as interest rates on the y-axis (P). When the quantity of money demanded increase, the price of money (interest rates) also increases, and causes the demand curve to increase and shift to the right. A decrease in demand would shift the curve to the left. Free to share, print, make copies and changes. Get yours at Wikipedia. "Supply-and-demand." GNU FDL View on Boundless.comGNU FDLhttp://en.wikipedia.org/wiki/File:Supply-and-demand.svgView on Boundless.com Monetary Policy

Fluctuation in Interest Rates This graph shows the fluctuation in interest rates in Germany from 1967 to Interest rates fluctuate over time as the result of numerous factors. In Germany, the interest rates dropped from 14% in 1967 to almost 2% in This graph illustrates the fluctuations that can occur in the short-run and long-run. Interest rates fluctuate based on certain economic factors. Free to share, print, make copies and changes. Get yours at Wikipedia. "German bank interest rates from 1967 to 2003 grid." Public domain View on Boundless.comPublic domain on Boundless.com Monetary Policy

Free to share, print, make copies and changes. Get yours at Monetary Policy Suppose the rate of return paid on bonds rises. What will happen to the demand for money and the interest rate? A) The demand for money will fall and the interest rate will increase B) The demand for money will fall and the interest rate will decrease C) The demand for money will rise and the interest rate will increase D) The demand for money will rise and the interest rate will decrease

Free to share, print, make copies and changes. Get yours at Boundless - LO. "Boundless." CC BY-SA BY-SA 3.0http:// Monetary Policy Suppose the rate of return paid on bonds rises. What will happen to the demand for money and the interest rate? A) The demand for money will fall and the interest rate will increase B) The demand for money will fall and the interest rate will decrease C) The demand for money will rise and the interest rate will increase D) The demand for money will rise and the interest rate will decrease

Free to share, print, make copies and changes. Get yours at Monetary Policy Which of the following statements about a shift in the money demand curve is NOT true? A) The demand curve shifts to the right when demand for money increases B) The price of money is measured by the interest rate. C) Money is not an interest-bearing asset D) Demand for money determines how a person's wealth should be held

Free to share, print, make copies and changes. Get yours at Boundless - LO. "Boundless." CC BY-SA BY-SA 3.0http:// Monetary Policy Which of the following statements about a shift in the money demand curve is NOT true? A) The demand curve shifts to the right when demand for money increases B) The price of money is measured by the interest rate. C) Money is not an interest-bearing asset D) Demand for money determines how a person's wealth should be held

Free to share, print, make copies and changes. Get yours at Monetary Policy Assume there is an influx of immigration and demand for money shifts outward. What would happen? A) The supply of money would remain constant and interest rates would increase B) The supply of money would increase and interest rates would increase C) The supply of money would increase and interest rates would remain constant D) The supply of money would remain constant and interest rates would decrease

Free to share, print, make copies and changes. Get yours at Boundless - LO. "Boundless." CC BY-SA BY-SA 3.0http:// Monetary Policy Assume there is an influx of immigration and demand for money shifts outward. What would happen? A) The supply of money would remain constant and interest rates would increase B) The supply of money would increase and interest rates would increase C) The supply of money would increase and interest rates would remain constant D) The supply of money would remain constant and interest rates would decrease

Attribution Wikipedia. "Expansionary policies." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Expansionary_policies Wikipedia. "Interest rate." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Interest_rate#Reasons_for_interest_rate_changes Wikipedia. "Money supply." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Money_supply Wikipedia. "Money demand." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Money_demand Wiktionary. "asset." CC BY-SA BY-SA 3.0http://en.wiktionary.org/wiki/asset Wiktionary. "money supply." CC BY-SA BY-SA 3.0http://en.wiktionary.org/wiki/money+supply Wiktionary. "asset." CC BY-SA BY-SA 3.0http://en.wiktionary.org/wiki/asset Wikipedia. "Money demand." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Money_demand Wikipedia. "Demand curve." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Demand_curve Wikipedia. "nominal interest rate." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/nominal%20interest%20rate Wikipedia. "Money supply." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Money_supply#Monetary_exchange_equation Wikipedia. "Market equilibrium." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Market_equilibrium Wikipedia. "Interest rate." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Interest_rate#Reasons_for_interest_rate_changes Wiktionary. "equilibrium." CC BY-SA BY-SA 3.0http://en.wiktionary.org/wiki/equilibrium Wiktionary. "interest rate." CC BY-SA BY-SA 3.0http://en.wiktionary.org/wiki/interest+rate Free to share, print, make copies and changes. Get yours at Monetary Policy