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Macro 6
- 6. The Market for Money
Interest is the rent we pay
when we borrow money.
Earn money
Rent money
- 7. The Market for Money
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
$0 $100 $200 $300 $400 $500 $600 $700 $800
Savings/Borrowings
Interest
Rate
Demand
Supply
- 9. The Market for Money
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
$0 $100 $200 $300 $400 $500 $600 $700 $800
Savings/Borrowings
Interest
Rate
Demand
Supply
- 10. The Market for Money
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
0 100 200 300 400 500 600 700 800
Savings/Borrowings
Interest
Rate
Demand
Supply
Demand
w/ Govt
- 11. The Market for Money
Savings/Borrowings
Interest
Rate
Demand
Supply
5%
$400