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For each graph, you will need to: Correctly label the axes and the curve(s). If there is an equilibrium point, correctly label it on both
For each graph, you will need to:
- Correctly label the axes and the curve(s).
- If there is an equilibrium point, correctly label it on both axes and correctly label any shifts and new equilibrium points.
- A possible cause might be something likeinterest rate increases.
Graph 1: Will be a Money Market Graph
Draw a graph that representsmoney supply decreases.
- Correctly draw the graph of the money market.
- What are the 2 possible causes of this graph?
- What is the effect on investment, consumption, and the value of the currency?
Graph 2: Will be a Money Market Graph
Draw a graph that representsmoney supply increases.
- Correctly draw the graph of the money market.
- What are the 2 possible causes of this graph?
- What is the effect on investment, consumption, and the value of the currency?
Graph 3: Will be a Loanable Funds Market Graph
Draw a graph that representsincrease in the demand of loanable funds.
- Correctly draw the graph of the loanable funds market.
- What are the 2 possible causes of this graph?
- What is the effect on investment, consumption, and the value of the currency?
Graph 5: Will be a Loanable Funds Market Graph
Draw a graph that representsincrease in the supply for loanable funds.
- Correctly draw the graph of the loanable funds market.
- What are the 2 possible causes of this graph?
- What is the effect on investment, consumption, and the value of the currency?
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