Read this chapter to learn how financial markets fit into the model of aggregate demand and aggregate supply and how they relate to the real GDP level as well as the price level. The money market model explains the determination of equilibrium rate of interest. Attempt the “Try It” exercises at the end of the chapter.
Activities
Principles of Macroeconomics: “Chapter 10: Financial Markets and the Economy”
OpenStax College: “Macroeconomics, Chapter 15: Monetary Policy and Bank Regulation”
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