JAMB - Economics (2019 - No. 13)
The money market equilibrium is defined as_________
when the demand and supply of money are equal
when demand is greater than supply of money
when demand is less than supply of money
when supply is greater than demand for money
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)
where L = money demand, μ = money supply
Thus μ = LT(γ) + Ls(r)
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