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November 23, 2025 

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NEAR MONEY: Assets that are highly liquid, and can be easily exchanged for money, but can not be used directly to purchase goods. The best examples are savings accounts, certificates of deposit, and similar bank accounts. These savings near monies are added to M1 to derived M2. Several investment type near monies are added to M2 to derived M3.

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AGGREGATE DEMAND AND MARKET DEMAND

The aggregate demand curve, or AD curve, has similarities to, but differences from, the standard market demand curve. Both are negatively sloped. Both relate price and quantity. However, the market demand curve is negatively sloped because of the income and substitution effects and the aggregate demand curve is negatively sloped because of the real-balance, interest-rate, and net-export effects.

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PURPLE SMARPHIN
[What's This?]

Today, you are likely to spend a great deal of time watching infomercials hoping to buy either a package of 3 by 5 index cards, the ones without lines or a blue mechanical pencil. Be on the lookout for gnomes hiding in cypress trees.
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This isn't me! What am I?

A lump of pure gold the size of a matchbox can be flattened into a sheet the size of a tennis court!
"A man flattened by an opponent can get up again. A man flattened by conformity stays down for good. "

-- Thomas Watson Jr., executive

S&D
Supply and Demand
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