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.
Following equations denote market for widgets Demand: P = 10 - Q Supply: P = Q - 4 Here P mentions the price in dollars per unit and Q mention the quantity in thousands of units. A
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