The Money Market (1 of 2)- Macro Topic 4.5

In this video I explain the money market graph with the the demand and supply of money. The graph is used to show the idea of monetary policy and how changing the money supply effects interest rates. Thanks for watching. Please subscribe

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[wendybetancourt]

There is something that I don't understand. People choose to hold a larger quantity of money if
the interest rate falls, which causes the opportunity cost of holding money to rise??

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[brycejones]

This video is a good way to review the money market as he makes it very simple compared to books.