Money Supply, Money Demand, and Interest Rates

Watch this lecture on how money supply and demand impact interest rates. Note that the interest rate is the price of money (as it is money's opportunity cost). When individuals consider the interest rate when deciding how much income to save and how much to spend, they are choosing how much money to hold (for spending).

 

Source: Khan Academy, https://youtu.be/vItRHYu-A88
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Last modified: Wednesday, September 20, 2023, 3:51 PM