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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 on theme: "Money Market Graphs Please write down the prompts and graph. This will be turned in. Be sure to label everything!"— Presentation transcript:

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

2 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 ↓ ?

3 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 ↓ ?

4 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 ↓ ?

5 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?

6 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?


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