Equilibrium interest rate
How is the equilibrium interest rate in the money market estimated?
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This total demand illustrates the total amount of money demanded at every interest rate. The equilibrium interest rate is found out at the intersection of the net demand for money curve and the supply of money curve.
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Describe how a firm find out the optimal level of current assets. The optimal level of working capital is finding out by determining the amount that balances the requirement for liquidity and for profitability.
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