Utilize your general knowledge of equilibrium prices

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Reference no: EM1321935

Q. Illustrate what is the basic determinant of (a) the strength of the transactions demand for money (the location of the transactions demand for money curve) also (b) the amount of money demanded for assets, given a particular asset demand for money curve? Elucidate how is the equilibrium interest rate in the marketplace for money concluded? Utilize a graph to Elucidate how the impact of an increase in the total demand for money on the equilibrium interest rate (no change in money supply). Utilize your general knowledge of equilibrium prices to explain why the previous interest rate is no longer sustainable.

Reference no: EM1321935

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