Use the following to answer questions:
-(Figure: Equilibrium in the Money Market)Refer to Figure: Equilibrium in the Money Market.Equilibrium will occur at interest rate _____ and quantity of money _____.

Question

Use the following to answer questions: 
-(Figure: Equilibrium in the Money Market)Refer to Figure: Equilibrium in the Money Market.Equilibrium will occur at interest rate _____ and quantity of money _____.

Quizplus · Accepted Answer

Equilibrium occurs at the intersection of the supply and demand curves. In this figure, the supply curve is labeled as "MS" and the demand curve is labeled as "MD". The point where these two curves intersect is at an interest rate of i₁ and a quantity of money of Q₁.

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