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Hey Everyone! I'm Mr. Willis, and You Will Love Economics!
In this video, I will:
- Define money demand and the two forms of money demand
- Explain the factors that contribute to the inverse relationship between the nominal interest
rate and quantity of money demanded
- Identify the 3 determinants of money demand
- Define money supply
- Explain the constant relationship between the nominal interest rate and quantity of money
supplied
- Use graphs to analyze how a change in money demand will impact the nominal interest rate
- Use graphs to analyze how a change in money supply will impact the nominal interest rate
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