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this is your macro economics video on the money supply and money demand graph so just like most of the graphs that weve been talking about this is just a basic supply and demand graph but this time its about the money that is in supply versus the demand for money so in order to graph this we first have to look at our axes the vertical axis is going to be the nominal interest rate and the nominal interest rate is typically denoted with a small i and you cant use large i for the vertical axis because that means investment spending you will see sometimes when they refer to it as little r little r generally means that the real interest rate but because the nominal and real interest rates change at the same time then sometimes various economists use either little i or little r for labeling the vertical axis the horizontal axis is quantity and in this case were talking about the quantity of money in circulation so the money supply which is the actual stock of money currency and coin tha