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Lemonade Loans
Witsooth · AP Macro 4.5 · Money Market
You are the Federal Reserve, running a lemonade stand.
Each customer is a borrower who needs one interest rate.
Move the
reserve requirement
and buy or sell
bonds
to shift the money supply until the rate lands where they need it.
You only see the rate you hit once you serve. 🍋
Open the Stand
Money Market
What you just did, in economic terms
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See the Pour →
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Next Order →
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Witsooth
Lemonade Loans
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#001
BORROWER
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Rate
⚠ Inflation!
🎛️ Fed Controls
🏦 Reserve Req
Neutral
▲ Raise (tight)
Lower (loose) ▼
📜 Bonds
Neutral
◄ Sell (tight)
Buy (loose) ►
🍋 Serve
Raising reserves tightens · Lowering loosens
Selling bonds tightens · Buying loosens
📈 Money Market