Predict Changes in the Euro–Dollar Exchange Rate
Supply and Demand: Bartering Apples per Orange Example
Supply of Money in the Money Market

Establish Money Market Equilibrium

Start with an increase in output.

An increase in output increases the money demand curve, which, in turn, increases the real interest rate without changing the quantity of real money.

  • Add a Comment
  • Print
  • Share


Promoted Stories From Around The Web

blog comments powered by Disqus
The Roles of Speculators and Central Banks in Foreign Exchange Markets
How to Determine Exchange Rates through Supply and Demand
How to Work with the Purchasing Power Parity (PPP)
Combine the Money Market with the Foreign Exchange Market
Attract Foreign Investors with Soft Pegs