Unit 7 Money Market Loanable Fund Market - .if?i it I I F I i The Money Market I The quantity of money(e.g M1 is determined by the Federal Reserve(the

Unit 7 Money Market Loanable Fund Market - .if?i it I I F I...

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.if:?i.itI,! The demand for money is based on a decision by consumers to hold wealth in the form of interest- bearing assets (e.g. savings accounts) or as money (noninterest-bearing). There are three types of money demand, based on the three basic motives people have for holding money (rather than interest-bearing

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