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Exhibit 15.3 -Exhibit 15.3 Shows Equilibrium in a Money Market. What Determines

Question 132

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Exhibit 15.3
Exhibit 15.3 -Exhibit 15.3 shows equilibrium in a money market. What determines the equilibrium interest rate, i? A) the intersection of the demand for money D<sub>m</sub> with the supply of money S'<sub>m</sub>. B) the intersection of the demand for money D<sub>m</sub> with the supply of money S<sub>m</sub>. C) the intersection of the demand for money S<sub>m</sub> with the supply of money D<sub>m</sub>. D) the intersection of the demand for money S'<sub>m</sub> with the supply of money D<sub>m</sub>. E) the discount rate at the Federal Reserve
-Exhibit 15.3 shows equilibrium in a money market. What determines the equilibrium interest rate, i?


A) the intersection of the demand for money Dm with the supply of money S'm.
B) the intersection of the demand for money Dm with the supply of money Sm.
C) the intersection of the demand for money Sm with the supply of money Dm.
D) the intersection of the demand for money S'm with the supply of money Dm.
E) the discount rate at the Federal Reserve

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