When a Graph of the Money Market Is Drawn with the Value

question 130

Multiple Choice

When a graph of the money market is drawn with the value of money on the vertical axis, long-run equilibrium is obtained when the quantity demanded and quantity supplied of money are equal. This is due to adjustments in which of the following?

• A) the value of money
• B) real interest rates
• C) nominal interest rates
• D) the money supply

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