Question on: JAMB Economics - 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
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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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