14UIUC%20FIN%20300%20Macroeconomic%20Factors%20and%20Markets%20%28FA10%29

14UIUC%20FIN%20300%20Macroeconomic%20Factors%20and%20Markets%20%28FA10%29

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UNIVERSITY OF ILLINOIS College of Business - Department of Finance - Finance 300 (Financial Markets) Professor James Jackson Money Market ( i %, $) Money Demand ($) ↑ Nominal Interest Rates = _________________________ Money Supply ($) ↔ Aggregate Demand ($) ↑ Aggregate Price Level = _________________________ Aggregate Supply (Output) ↔
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Unformatted text preview: Labor Market Labor Demand ($)↑ ↑Aggregate Wage Level = ______________________________________ Labor Supply (Households/Productivity) ↔ Financial Capital Market Investor Demand ($) ↑ ↑ Asset Price or Cost of Capital (k) = ____________________________ Supply (Firms; Securities) ↔ ***Key: ↑ increase; ↓ decrease; ↔ flat or unchanged....
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