The purpose of this Tutorial Sheetis for you to understand how the goods and services market works. The first step is to understand the equivalence between the equilibrium of supply and demand in this market and the equality between savings and investment. Then in a second step, it is a question of understanding the influence which the State can have through these monetary and budgetary policies on this equilibrium.

The purpose of this Tutorial Sheetis for you to understand how the goods and services market works. The first step is to understand the equivalence between the equilibrium of supply and demand in this market and the equality between savings and investment. Then in a second step, it is a question of understanding the influence which the State can have through these monetary and budgetary policies on this equilibrium.

The purpose of this Tutorial Sheet is for you to understand how the money market works. It involves understanding (1) the determinants of demand for money and demand for treasury bills, (2) the relationship between the price of treasury bills and the interest rate, (3) how the balance is determined in this market and how it can be changed.

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