Answer: The equilibrium rate of interest in the market for money is determined by the intersection of the supply of money curve and the total demand for money curve.
Explanation: To determine the equilibrium rate of interest, it's necessary to study where the supply and demand curve points intersect. When supply and demand are equal, equilibrium has been achieved.
Answer:
B) supply-of-money curve and the total-demand-for-money curve.
Explanation:
Money's demand curve shows the total quantity demanded at a given price. The price for money is the interest rate. It is the same concept as any other supply-demand curve. Money's supply curve shows the total quantity supplied for money at a given price.
The equilibrium point or equilibrium rate is determined by the intersection of the supply and demand curves.
