The money market equilibrium is defined as - JAMB Economics 2019 Question
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 option: a
where L = money demand, μ = money supply
Thus μ = LT(γ) + Ls(r)
The money market is in equilibrium when the demand and supply of money are equal i.e L= u
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