Money Market Graphs Please write down the prompts and graph. This will be turned in. Be sure to label everything!

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Presentation transcript:

Money Market Graphs Please write down the prompts and graph. This will be turned in. Be sure to label everything!

Money Market Supply Shift 1. The unemployment rate is 2%. Inflation is at 8%. A. tight or easy? B. ir ↑ or ↓ ? C. MS ↑ or ↓ ? D. inflation ↑ or ↓ ? E. unemp ↑ or ↓ ?

Money Market Supply Shift 2. Consumer spending has dropped and unemployment is at 9%. A. tight or easy? B. ir ↑ or ↓ ? C. MS ↑ or ↓ ? D. inflation ↑ or ↓ ? E. unemp ↑ or ↓ ?

Money Market Supply Shift 3. Business investment has slowed considerably. A. tight or easy? B. ir ↑ or ↓ ? C. MS ↑ or ↓ ? D. inflation ↑ or ↓ ? E. unemp ↑ or ↓ ?

Money Market Demand Shift 4. More and more people are using credit cards instead of cash. A. demand will ↑ or ↓ ? B. ir ↑ or ↓ ? C. Q of money ↑, ↓ or stay the same?

Money Market Demand Shift 5. Suddenly people are running to the banks to take out their money to buy gold. A. demand will ↑ or ↓ ? B. ir ↑ or ↓ ? D. Q of money ↑, ↓ or stay the same?