Suppose the total demand for money is described by the following equation:
MD = 30-2i
where i is the prevailing market interest rate. The total supply of money is described by the following equation:
MS = 3 + 7i
According to liquidity preference, what is the equilibrium interest rate?© BrainMass Inc. brainmass.com December 24, 2021, 9:29 pm ad1c9bdddf
According to liquidity preference, equilibrium interest rate is ...
Solution describes the steps to calculate equilibrium interest rate.