Demand, Supply, and Equilibrium in the Money Market
Completion requirements
We have discussed the role of supply and demand in the money market, and we have seen how it has an effect on interest rates as well. Here, you will learn how transfer costs and expectations can affect demand. What is Keynes' theory with regard to the relationship between investment in bonds and money?
Effects of Changes in the Money Market
A shift in money demand or supply will lead to a change in the equilibrium interest rate. Let's look at the effects of such changes on the economy.