曼昆宏观经济学第三十四章.pptxVIP

34;The burning issue ;The Theory of Liquidity Preference;The overview;The overview;“Irrational exuberance .”;The idea in tangible; A booming stock market expands the aggregate demand for goods and services. when the stock market booms, households become wealthier, and this increased wealth stimulates consumer spending. ?a rise in stock prices makes it more attractive for firms to sell new shares of stock, and this stimulates investment spending. ;The opposite occurs when the stock market falls. ?spending on consumption and investment declines, depressing aggregate demand and pushing the economy towards recession. ;Figure 1 Equilibrium in the Money Market;;Figure 2 The Money Market and the Slope of the Aggregate-Demand Curve;;Figure 3 A Monetary Injection;The close ;Aggregate Demand ;Aggregate Demand;Contents ;HOW MONETARY POLICY INFLUENCES AGGREGATE DEMAND;The Theory of Liquidity Preference;Money Supply The money supply is controlled by the Fed through: Open-market operations Changing the reserve requirements Changing the discount rate Because it is fixed by the Fed, the quantity of money supplied does not depend on the interest rate. The fixed money supply is represented by a vertical supply curve.;Money Demand Money demand is determined by several factors. According to the theory of liquidity preference, one of the most important factors is the interest rate. People choose to hold money instead of other assets that offer higher rates of return because money can be used to buy goods and services. The opportunity cost of holding money is the interest that could be earned on interest-earning assets. An increase in the interest rate raises the opportunity cost of holding money. As a result, the quantity of money demanded is reduced.;Equilibrium in the Money Market According to the theory of liquidity preference: The interest rate adjusts to balance the supply and demand for money. There is one interest rate, called the equilibrium interest rate, at which the quant