Money-commodity money, Fiat. Money supply=currency in hands of public+other assetsas means of payment (demand deposits, traverler's checks, savings accounts, time deposits, mutual funds) M1=currency in hands of public+traverler's checks+demand deposits+other checkable deposits CU+CD M2= M1+savings account+small time deposits(<100,000),+non institutional(retail)money mkt. mutual funds M3= M2+Large term deposits(not insured)+institutional money market mutual funds+long term repos(repurchaseagreements, gov't securities)+Long term euro …showed first 75 words of 941 total…

…showed last 75 words of 941 total…increased riskiness of stocks If actual int rate is below equil int rate, Price of bonds will decrease In Short run purchase of bonds-will lower int rate, increase spending, increase output If price of oil inc- AS will inc due to decline in wages, returning economy to full employment. short run decrease in gov't purchases-decrease real GDP because of multiplier effect. declinde will be lessened by decrease in the price level and the interest rate.