Money Market Graphs
To make your own graph you must first label your axis' correctly with the interest rate (i)on the y axis and on the x axis quantity (qm) of money. Then when drawing your starting graph it is always downward slopping as demand and quantity are opposites. Then your Money supply is a vertical line because it does not vary on the interest rate but is instead set by the fed. Then if there is a incentive to spend money you may shift the graph to the right as there will be a increase in the demand for money. How ever if the Fed or government want to stabilize the money supply they themselves can move it left or right on the graph to counter recession or inflation.
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