This and the next slide summarize t

This and the next slide summarize the case study on p.295. The data source is given on the next slide.

At this point, students have now learned two theories about the effects of monetary policy on interest rates. This case study shows them that both theories are relevant, using a real-world example to remind students that the classical theory of chapter 4 applies in the long-run while the liquidity preference theory applies in the short run.