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The Money Market: Money Supply and Money Demand Curves

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question 1 of 3

What is the economics model that describes the demand and supply of money in a nation called?

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1. When economists illustrate the money market, the demand curve is _____ while the supply curve is _____.

2. How does high economic output lead to higher nominal interest rates?

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About This Quiz & Worksheet

The supply and demand curves for money graphically represent the money markets in a nation, and this quiz and worksheet are specifically designed to assess your knowledge of key concepts in this topic. The questions on the quiz will test you on the shape of this economic model, and the effects of certain changes in these models.

Quiz & Worksheet Goals

With these tools, you'll be able to quiz yourself on:

  • The model in economics that illustrates the supply and demand of money in a country
  • How these models are represented graphically
  • The changes that occur when one of the variables in the supply and demand curves is manipulated
  • The function of the central bank

Skills Practiced

You will also be able to practice:

  • Reading comprehension - ensure that you draw the most important information on supply and demand curves and money markets from the related lesson
  • Defining key concepts - ensure that you can accurately define main phrases, such as the central bank
  • Distinguishing differences - compare and contrast topics from the related lesson, such as the representations of demand and supply curves
  • Knowledge application - use your knowledge to answer questions about money markets

Additional Learning

Review the lesson entitled The Money Market: Money Supply and Money Demand Curves for more information on these important concepts in economics. These are a few objectives included in this lesson:

  • Describe the money demand curve
  • Describe the money supply curve
  • Discuss how the money market reaches equilibrium and what equilibrium looks like on a graph
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