Money Supply and Demand Impacting Interest Rates

Watch this lecture about money supply and demand impacting interest rates. Note that the interest rate is the price of money (as it is money's opportunity cost). As individuals consider the interest rate when deciding how much of their income to save and how much to spend, they effectively make the choice of how much money to hold (for the purpose of spending).

Last modified: Friday, March 19, 2021, 6:19 AM