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Macroeconomics Study Notes: Finance, Exchange Rates, Aggregate Demand & Supply, Fiscal and Monetary Policy

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Investment, Savings, and the Financial System

Savings Equal Investment

Market for Loanable Funds

Shifts in the Market for Loanable Funds

Nominal Interest, Real Interest, and the Fisher Equation

Exchange Rates: Introduction

Exchange Rates: Equilibrium

Exchange Rates: Shifts in Supply and Demand

Exchange Rates and Net Exports

Aggregate Demand

Long Run Aggregate Supply

Short Run Aggregate Supply

Shifting Short Run Aggregate Supply

Introduction to Fiscal Policy

Expansionary and Contractionary Fiscal Policy

Government Purchases and the Multiplier Effect

Taxes, the Multiplier Effect, and Automatic Stabilizers

Monetary vs Fiscal Policy

Goals of Monetary Policy

The Demand for Money

The Money Supply on the Graph

Monetary Policy and Aggregate Demand

Expansionary and Contractionary Monetary Policy

Introduction to the Federal Reserve