Multiple Choice
The money market (short-run) equilibrium equation states that the demand for real balances, (L(i) Y) is always equal to the supply of real balances (M/P) because ____ adjust(s) to ensure that people are willing to hold the entire stock.
A) nominal interest rates
B) real interest rates
C) the price level
D) nominal GDP
Correct Answer:
Verified
Correct Answer:
Verified
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