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Lectures in Macroeconomics- Charles W. Upton Calculating with our Money Demand Function Part 2.

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Presentation on theme: "Lectures in Macroeconomics- Charles W. Upton Calculating with our Money Demand Function Part 2."— Presentation transcript:

1 Lectures in Macroeconomics- Charles W. Upton Calculating with our Money Demand Function Part 2

2 Calculating with our Money Demand Function-Part 2 The Basic Tableau

3 Calculating with our Money Demand Function-Part 2 The Basic Tableau

4 Calculating with our Money Demand Function-Part 2 The Surprise Column

5 Calculating with our Money Demand Function-Part 2 Familiar Friends

6 Calculating with our Money Demand Function-Part 2 Consumption and Money Demand

7 Calculating with our Money Demand Function-Part 2 Starting

8 Calculating with our Money Demand Function-Part 2 Demand, Period 1

9 Calculating with our Money Demand Function-Part 2 Demand Period 1

10 Calculating with our Money Demand Function-Part 2 Carry-over, Period 2

11 Calculating with our Money Demand Function-Part 2 Wealth, Period 2 z= Present Value of Current & Future Income + Carryover Plus Real Return + Money Balances Carried Over z = $720 -$230.4+$38.4=$528

12 Calculating with our Money Demand Function-Part 2 Demand, Period 2

13 Calculating with our Money Demand Function-Part 2 Assets, End of Period 2

14 Calculating with our Money Demand Function-Part 2 Carry-over Period 2

15 Calculating with our Money Demand Function-Part 2 Wealth, Period 3

16 Calculating with our Money Demand Function-Part 2 Demand, Period 3

17 Calculating with our Money Demand Function-Part 2 Assets, End of Period 3

18 Calculating with our Money Demand Function-Part 2 From Period 3 to 4

19 Calculating with our Money Demand Function-Part 2 The Last Period

20 Calculating with our Money Demand Function-Part 2 End ©2004 Charles W. Upton. All rights reserved


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