Topics, in course order
- 4.1Financial AssetsNot practicedLessonNotes
- 4.2Nominal v. Real Interest RatesNot practicedLessonNotes
- 4.3Definition, Measurement, and Functions of MoneyNot practicedLessonNotes
- 4.4Banking and the Expansion of the Money SupplyNot practicedLessonNotes
- 4.5The Money MarketNot practicedLessonNotes
- 4.6Monetary PolicyNot practicedLessonNotes
- 4.7The Loanable Funds MarketNot practicedLessonNotes
Practice this unit
Question setExam-style questions from this unit's 7 topics, with an explanation for every option.
Unit testA timed test on the whole unit, every topic weighted equally.
Tools for this unit1 trainer.
In this unit's tools
Trainers 1
Free-response questions 8
- Ample reserves in a recession: the reserve market, investment, output and loanable funds
- Deficit spending at full employment in Tamsin: AD-AS, loanable funds and growth
- Higher real interest rates in Arland: loanable funds, capital flows, the currency and net exports
- Limited reserves and an inflationary gap: an open market operation, the money market, bonds and unemployment
- A recessionary gap in Calder: fiscal policy, the money market and self-adjustment
- Government borrowing in Corvel: the real interest rate, investment and the capital stock
- A rise in the price level: money demand, the nominal interest rate and bond prices
- A bank balance sheet: required and excess reserves, lending and the money supply