Principles of Macroeconomics / Unit 11 MAC 1006 short lesson, about 20 seconds
Liquidity Orders the Measures
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The idea
Liquidity is how quickly an asset can be spent without loss. Currency is perfectly liquid, a checking balance nearly so, an office building barely at all. The measures are ordered by liquidity.
In practice
Each measure answers how much purchasing power is ready to be spent.
Where people slip
Wealth and money differ. Assets can be large while money held is small.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
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