any ECON experts

[Agent_J]

does anyone know what RD and RF stand for in the solution/graph ?

[nsd]

Well from my basic Eco 100 class, I can see that RD is perfectly inelastic ... does that help in any way ?

[divx]

from econ 101, all I can tell you is what nsd said.

short runs means the market don't have time to adjust to the sudden changes, and long run means the market have time to adjust, therefore the market stablizes.

if you took science, then think of transient state and steady state, the system takes time to "damping" the forcing function. (if you don't get it, don't worry about it)

[urameatball]

OMG, it took me so long to figure out that graph.
There are way simpler ways of showing SR and LR effects from a change in money supply.


Anyway, judging from what was given, RD is domestic rate, RF is foreign rate. Graph is redundant, but makes sense (kinda).

[dmatthew]

RD = Domestic Interest Rate
RF = Foreign Interest Rate

This is Monetary Economics, you taking it in Waterloo?

[aznboi180]

hmm.. homework help on RFD.. interesting i'm gonna fire my tutor!