Unit 4; Video 2 Summary

Veal is tasty. This video is essentially practice over how to label a money market graph. on the Y-Axis, the price we pay to get money is labeled, AKA interest rate. On the X-Axis is labeled Quantity (of money). Demand will slope down(DM) due to the law of demand. The supply of money(SM) is vertical, because the supply of money is decided by the FED and does not fluctuate. A change in demand for money will shift the demand line either left or right. Changes in money supply will move the vertical line left or right.