Money Growth and Inflation- Macro Topic 5.3

In this video I explain the difference between the money market and the loanable funds market and explain why one of them is labeled nominal interest rate and the other is labeled REAL interest rate.

I also show how both graphs are related to each other and how they can shift in the short run and in the long run. In the bonus round I talk about the natural rate or interest and the Swedish economist Knut Wicksell. Sverige är bäst

Please keep in mind that this video is designed for students that have already learned these concepts and graphs. If it goes over your head, please go back and watch the Macro Unit 4 Summary Video or the videos below.

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