This document contains lecture slides on macroeconomics and the market for money. It discusses the rule of 70 for calculating doubling time based on interest rates like 10%, 7%, 3.5%, and 1%. It also explains the market for money by showing graphs of the demand and supply of savings and borrowings at different interest rates from 1% to 10% and how government can impact demand. Examples of I.O.U. notes at different interest rates including $100 at 5% and 10% interest and a $100 note with a 10% coupon rate each year until 2030 are also presented.

2. Lecture 6
Macroeconomics

3. Exam 1
Friday
February 1
Testing Center

4. Rule of 70s
Doubling time
=
70
r

5. 10%?
7%
3.5%
1%

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

8. 1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
0 100 200 300 400 500 600 700 800
The Market for Money
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

12. I.O.U.
$1
Dr. Pooley

13. I.O.U.
$100
Feb 1, 2020
Dr. Pooley

14. I.O.U.
$100 plus 5%
Feb 1, 2020
Dr. Pooley

15. I.O.U.
$100 plus 10%
Feb 1, 2020
Dr. Pooley

16. I.O.U.
$100
Coupon Rate 10%
Each Year
Feb 1, 2030
Dr. Pooley
$10 $10 $10 $10 $10 $10 $10 $10 $10 $10