Assume the money supply is set by the Fed at $1000 billion and the money demand function is represented by the following algebraic equation Md = 3000 - 20000r, where r = the interest rate. Calculate the interest rate which will clear this money market.

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The Answer of Assume the money supply is set by the Fed at $1000 billion and the money demand function is represented by the following algebraic equation Md = 3000 - 20000r, where r = the interest rate. Calculate the interest rate which will clear this money market.

Assume the Money Supply Is Set by the Fed at $1000