Equilibrium in the money market would be expressed by which of the following?

Question

Quizplus · Accepted Answer

This equation represents the equality between the money supply (MS) and the demand for money (Md) in the market. When the supply and demand for money are equal, an equilibrium in the money market is achieved. Therefore, M_s = M_d is the correct equation expressing the equilibrium in the money market. Choices A, C, and D are incorrect because they do not include the demand for money or they use variables that are not relevant to the money market equilibrium.

Equilibrium in the Money Market Would Be Expressed by Which