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CHAPTER 14 MONEY, INTEREST RATES AND EXCHANGE RATES

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Presentation on theme: "CHAPTER 14 MONEY, INTEREST RATES AND EXCHANGE RATES"— Presentation transcript:

1 CHAPTER 14 MONEY, INTEREST RATES AND EXCHANGE RATES

2 Figure 14-1 Aggregate Real Money Demand and the Interest Rate

3 Figure 14-2 Effect on the Aggregte Real Money Demand Schedule of a Rise in Real Income

4 Figure 14-3 Determination of the Equilibrium Interest Rate

5 Figure 14-4 Effect of an Increase in the Money Supply on the Interest Rate

6 Figure 14-5 Effect of the Interest Rate of a Rise in Real Income

7 Figure 14-6 Simultaneous Equilibrium in the U. S
Figure Simultaneous Equilibrium in the U.S. Money Market and the Foreign-Exchange Market

8 Figure 14-7 Money-Market/Exchange Rate Linkages

9 Figure Effect on the Dollar/Euro Exchange Rate and Dollar Interest Rate of an Increase in the U.S. Money Supply

10 Figure 14-9 Effect of an Increase in the European Money Supply on the Dollar/Euro Exchange Rate

11 Figure Monetary Growth and Price-Level Change in the Seven Main Industrial Countries,

12 Figure Month-to-Month Variablility of the Dollar/DM Exchange Rate and of the U.S./German Price level Ratio,

13 Figure 14-12 Short-Run and Long-Run Effects of an Increase in the U. S
Figure Short-Run and Long-Run Effects of an Increase in the U.S. Money Supply (Given Real Output, Y )

14 Figure 14-13 Time Paths of U. S
Figure Time Paths of U.S. Economic Variables After a Permanent Increase in the U.S. Money Supply

15 Figure 14A-1


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