Interest as Rent for Money

Watch this lecture, which discusses interest as rent for money. Be mindful that equilibrium interest rates are the balance or combination of the market for money plus the investment demand for money. Consequently, equilibrium real GDP and the price level will determine the equilibrium based on transactional demand and investment demand.

Source: Khan Academy, https://www.khanacademy.org/economics-finance-domain/old-macroeconomics/monetary-system-topic-old/interest-price-of-money-tutorial/v/interest-as-rent-for-money
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Last modified: Friday, March 19, 2021, 6:18 AM