Principles of Macroeconomics / Unit 18 MAC 1714 short lesson, about 20 seconds
Which Market Does a Question Live In
Captions available
The idea
Several models produce an interest rate, so the first move is placing the question. Ask what is bought and sold. Money against bonds is the money market. Saving against borrowing is loanable funds. One currency against another is foreign exchange.
In practice
Naming the market fixes which curves exist.
Where people slip
Most wrong answers come from working the right method in the wrong market.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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