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Other Things Equal, If There Is an Excess Demand for Money

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Other things equal, if there is an excess demand for money, the interest rate may rise.


Definitions:

Accounts Receivable Period

The average number of days that it takes for a company to receive payments from its customers for invoices issued.

Sales

The total amount of a company's revenues earned from selling its goods or services over a specific period.

Collect

To gather or accumulate items or amounts, often used in the context of collecting funds, debts, or data.

Accounts Payable Period

The average amount of time it takes for a business to pay off its suppliers after receiving goods or services.

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