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When the Money Market Is in Equilibrium, the Equilibrium Interest

Question 56

Multiple Choice

When the money market is in equilibrium, the equilibrium interest rate is that rate at which:


A) bond prices are at a maximum.
B) the demand for investment goods equals the supply of investment goods.
C) the demand for money balances equals the supply of money balances.
D) the excess supply of money balances is negative.

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