by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the IS-LM Model? The IS-LM model, which stands for “investment-saving” (IS) and “liquidity preference-money supply” (LM) is a Keynesian model that shows how the market for economic goods (IS) interacts with the loanable funds market (LM) or money market. It...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Aggregate Expenditure Model? The aggregate expenditure model relates the components of spending (consumption, investment, government purchases, and net exports) to the level of economic activity. In the short run, taking the price level as fixed, the level...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Money Capital Market? The money market is the trade in short-term debt. It is a constant flow of cash between governments, corporations, banks, and financial institutions, borrowing and lending for a term as short as overnight and no longer than a year. The...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What are Savings Deposits? A savings deposit, otherwise known as a passbook savings account, a statement savings account, or as a money market deposit account, is a deposit or account which, under the terms of the deposit contract or by practice of the depository...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Commodity Money? Commodity money is that has value because it is made of a particular commodity that has value itself. In other words, commodity money is the same a valuable object (an object with intrinsic value) in addition to the value it has in an...
