ECONOMICS 5 e Roger Arnold CHAPTER 14 Money Slides: 10 Download presentation ECONOMICS, 5 e Roger Arnold CHAPTER 14 Money and the Economy Exhibit 1 Assumptions and Predictions of the Simple Quantity Theory of Money Arnold Economics, 5 e / Ch. 14 Money and the Economy © 2001 South-Western College Publishing 151 Exhibit 2 Money and Inflation SOURCE: Financial International Statistics Yearbook and Handbook of International Economic Statistics, 1993 and 1996. Arnold Economics, 5 e / Ch. 14 Money and the Economy © 2001 South-Western College Publishing 152 Exhibit 3 The Simple Quantity Theory of Money in the AD–AS Framework Arnold Economics, 5 e / Ch. 14 Money and the Economy © 2001 South-Western College Publishing 153 Exhibit 4 Monetarism in an AD–AS Framework Arnold Economics, 5 e / Ch. 14 Money and the Economy © 2001 South-Western College Publishing 154 Exhibit 5 One-Shot Inflation: Demand-Side Induced Arnold Economics, 5 e / Ch. 14 Money and the Economy © 2001 South-Western College Publishing 155 Exhibit 6 One-Shot Inflation: Supply-Side Induced Arnold Economics, 5 e / Ch. 14 Money and the Economy © 2001 South-Western College Publishing 156 Exhibit 7 Changing One-Shot Inflation into Continued Inflation Arnold Economics, 5 e / Ch. 14 Money and the Economy © 2001 South-Western College Publishing 157 Exhibit 8 The Interest Rate and the Loanable Funds Market Arnold Economics, 5 e / Ch. 14 Money and the Economy © 2001 South-Western College Publishing 158 Exhibit 9 How the Fed Affects the Interest Rate Arnold Economics, 5 e / Ch. 14 Money and the Economy © 2001 South-Western College Publishing 159