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hey how you doing econ students this is mr. Clifford welcome to ac/dc econ right now lets talk about money the money market graph is one with five key graphs that you absolutely need to know if youre taking the AP macro exam it shows you the supply and demand for money before we go much further lets define what money is the narrowest definition of money is called m1 money now of course this involves cash which youd normally think of money but it also includes travelers checks and checkable deposits checkable deposits is money and checking accounts and its considered money because its used as a medium of exchange the point is money is not just the cash in your wallet its also money and checking accounts now also remember that money is not the same as wealth so if you say oh Im my buddy hes got so much money hes got three houses in ten cars that doesnt mean he has a lot of money so assets like cars and houses and stocks and bonds are not actually money the reason why is that
