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In Early 2009 the Price of Computer Memory Chips Rose

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Essay

In early 2009 the price of computer memory chips rose. In a demand and supply model, shifts in what curve(s) could have brought about the higher price?


Definitions:

Reserve Requirement

The minimum amount of reserves that banks must hold against deposits, as mandated by central banking authorities to ensure bank liquidity.

Federal Reserve

The central banking system of the United States, responsible for monetary policy, financial regulation, and stability.

Excess Reserve

Funds that banks hold over and above the required minimum reserves mandated by central banking authorities.

Money Supply

The aggregate of all money, such as cash, deposits in banks, and liquid assets, that is present within an economy at a certain point in time.

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