The money market equilibrium is defined as_________
ECONOMICS
JAMB 2019
The money market equilibrium is defined as_________
- A. when the demand and supply of money are equal
- B. when demand is greater than supply of money
- C. when demand is less than supply of money
- D. when supply is greater than demand for money
Correct Answer: A. when the demand and supply of money are equal
Explanation
The money market is in equilibrium when the demand & supply of money are equal i.e L = μ where L = money demand, μ = money supply Thus μ = LT(γ) + Ls(r)
Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *