According to liquidity preference what is the equilibrium, Ask an Expert

Finance

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?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M949860

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