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9: Financial markets, interest rates, foreign exchange rates and AD
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- How is the interest rate determined?
- How does the interest rate affect aggregate demand?
- 9.1: Portfolio choices between money and other assets
- 9.2: The demand for money balances
- 9.3: Financial market equilibrium and interest rates
- 9.4: Interest rates and foreign exchange rates
- 9.5: Interest rates, exchange rates, and aggregate demand
- 9.6: The Transmission Mechanism
- 9.7: Key Concepts
- 9.8: Exercises for Chapter 9