I can see the confusion. Money supply is measured by M/P (could you =
tell
me what that is?). There are two significant points on the money =
supply
line, M1/P and M2/P. The money supply line is horizontal. However, =
once we
examine individual points on the graph, we look at where it crosses the
various interest rates, R1, R2, and R3. In order to do that, we look =
at
vertical M/P's. But remember, the vertical M/P's are just points on =
the
horizontal money supply line (M/P).
Hope this helps.
Michael
-----Original Message-----
From: Stacie R. W. Grindstaff [SMTP:corpact@eos.net]
Sent: Wednesday, January 20, 1999 3:22 PM
To: Study Group 5A
Subject: Macroeconomics Question
Anybody reading Wachtel yet?=A0 If so, let me know what you think of
this?=A0 On page 36, the graph depicts Money Supply as a vertical =
line.=A0 The
text, however, describes it as a horizontal line.=A0 The Actex notes =
also
describe it as a horizontal line.=A0 Am I crazy?
=A0
This stuff doesn't make much sense to me anyway, so when there are
what seem to be typos, it drives me crazy.=A0 I don't know if I'm not
understanding something or if it's just wrong.
=A0
Any thoughts?