How Is the Equilibrium Rate of Interest in the Money

question 38

Multiple Choice

How is the equilibrium rate of interest in the money market determined?

• A)By the intersection of the supply of money and the asset demand for money.
• B)By the intersection of the supply of money and the transactions demand for money.
• C)By the intersection of the supply of money and the total demand for money.
• D)By the intersection of aggregate expenditures and the total demand for money.

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