Aggregate Demand: Third Period by Lucy Griswold https://padlet.com/lucy_griswold/f8da7ervuinc Wealth Effect, Interest Rate Effect and FOREX Effect en-us 2017-02-27 19:20:08 UTC 2025-09-25 20:19:41 UTC hello@padlet.com Name lucy_griswold https://padlet.com/lucy_griswold/f8da7ervuinc/wish/156535238 Explanation here or as comment]]> 2017-02-27 19:21:13 UTC https://padlet.com/lucy_griswold/f8da7ervuinc/wish/156535238 Colin & Ella https://padlet.com/lucy_griswold/f8da7ervuinc/wish/156548065 Interest rate effect: price level decreases, purchasing power goes up ]]> 2017-02-27 19:54:59 UTC https://padlet.com/lucy_griswold/f8da7ervuinc/wish/156548065 Tristin, Alana, and Rachel https://padlet.com/lucy_griswold/f8da7ervuinc/wish/156549070 interest rate effect: price level decreases, power of the purse (purchasing power) increases, consumption spending decreases, saving of money increases, lending money increases, interest rate (money returning to bank) decreases

FOREX effect: price level decreases, interest rate (money returning to bank) decreases, American investors change their money into pounds, price of dollar depreciates and pound increases, British buy more American goods (hamburgers!), the rate of American goods going to Britain increases, the rate of British goods (croissants) going to America decreases. ]]> 2017-02-27 19:57:59 UTC https://padlet.com/lucy_griswold/f8da7ervuinc/wish/156549070 Arthur and kiarra https://padlet.com/lucy_griswold/f8da7ervuinc/wish/156549481
Interest rate=  Prices levels do down and the power to purchase ends up increasing and the amount of money in the bank also increases along with amount of power so interest rates go down 

]]> 2017-02-27 19:59:16 UTC https://padlet.com/lucy_griswold/f8da7ervuinc/wish/156549481 Max and Paulo https://padlet.com/lucy_griswold/f8da7ervuinc/wish/156549618 Price level goes down, people's savings and purchasing power goes up, the money supply in banks goes up, rate of interest goes down, investment rates go down. 

Price level goes down, interest rates go down,  US currency converted to U.K. currency, causing dollar to drop and pound to go up, causes exports from US to go up.]]> 2017-02-27 19:59:39 UTC https://padlet.com/lucy_griswold/f8da7ervuinc/wish/156549618 Savings https://padlet.com/lucy_griswold/f8da7ervuinc/wish/156550507 2017-02-27 20:02:11 UTC https://padlet.com/lucy_griswold/f8da7ervuinc/wish/156550507 Max C, radian, Ramon https://padlet.com/lucy_griswold/f8da7ervuinc/wish/156550964 2017-02-27 20:03:37 UTC https://padlet.com/lucy_griswold/f8da7ervuinc/wish/156550964 Riley and Lauren rileyjane512 https://padlet.com/lucy_griswold/f8da7ervuinc/wish/156551210 Savings effect:
Prices fall, which allows people to buy more, increasing the purchasing power. Because that increased, people don't have to spend as much to get the things they need so they can save more. This lets the bank lend out more and keep interest low because they don't need as much money. 

Foreign exchange:
All of the stuff in the first one happens and people have more money to invest. They find that interest rates aren't as high in other countries so they decide to invest there. They have to convert heir currency which depreciates the value of American dollars which makes other countries want to buy from us, so exports increase

]]> 2017-02-27 20:04:37 UTC https://padlet.com/lucy_griswold/f8da7ervuinc/wish/156551210 https://padlet.com/lucy_griswold/f8da7ervuinc/wish/156551334 2017-02-27 20:05:10 UTC https://padlet.com/lucy_griswold/f8da7ervuinc/wish/156551334 Mitchell and Cameron https://padlet.com/lucy_griswold/f8da7ervuinc/wish/156553280 2017-02-27 20:11:23 UTC https://padlet.com/lucy_griswold/f8da7ervuinc/wish/156553280 https://padlet.com/lucy_griswold/f8da7ervuinc/wish/156554113 2017-02-27 20:14:10 UTC https://padlet.com/lucy_griswold/f8da7ervuinc/wish/156554113