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Money- Supply
and demand
Madel magsino, mba
Hello!
Who here has a lot of money?
Who doesn’t have problems with
money?
2
Economics of money
> Medium of Exchange
> Store of Value
> Center of all Economic
Activities
4
5
Functions of
Money
Primary Secondary
Store of ValueUnit of Account
Medium of
Exchange
Money Demand
6
theories
> Quantity Theory of Money
- Changes in the quantity of money tend to
affect the purchasing power of money
inversely. That is, with every increase of
money, each monetary unit tends to buy
smaller quantity of goods and services while
a decrease in the quantity of money has the
opposite effect.
7
8
Money Supply
9
10
Refers to the total amount of
Money available to the public in
the economy at a point in time.
Amount of money held in the
public.
Ad-as model
11
12
Thanks!
Any questions?

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Money Supply and Demand: Economics of Money Functions and Theories

Editor's Notes

  1. Graph the inverse relationship between Money demand and interest rate
  2. Graph Money Supply