03/23/14 Blog Response

Overall, I think that the videos were very helpful on the information it was explaining. Even though some of the information the lady talked about was already given to us in class, it helped clear things up on anything you didn't understand and the examples that were given helped clarify any misunderstandings I had. I think that by hearing the information again and having a visual of the graphs and information helped me remember them better. 

I learned that the supply of money does not vary based on interest rates, therefore it is vertical. To stabilize interest, the Feds can increase the money supply, moving it to the right. To decrease interest in the money market, the Fed's increase money supply. Fed's try to stabilize interest rates because without it, they cannot predict the amount of investments, level of consumer spending, and cannot regulate aggregate demand. The supply of loansable funds come from the amount of money people have in the bank, which means it is dependent on savings. Banks also create money by making loans.

All of the information was very helpful to me!