An Introduction to Monetary Theory and Policy

aggregate demand amount analysis bank time deposits billion borrowed reserves capital cash balance central bank chapter commercial bank reserves commercial banks cost currency and demand curve decrease demand deposits demand for money determined discount rate dollar economic activity equation equilibrium excess reserves expected expenditures factors Fed's Federal Reserve Bank Federal Reserve System fiscal policy funds holding money increase inflation interest elasticity interest rate inversely investment investors Keynes Keynesians liabilities liquidity preference loans and securities Louis Review M₁ market rate member bank reserves Milton Friedman monetarists monetary aggregates monetary policy monetary theory money multiplier money supply mortgage nominal income nonbank public open market operations open market purchase percent percentage precautionary price level quantity of money quantity theory rate of interest rate of return relation relative reserve requirement savings accounts stores of value supply of money Suppose total assets total reserves unemployment variables wealth adjustment