Get the answers you need from a community of experts on IDNLearn.com. Our platform offers detailed and accurate responses from experts, helping you navigate any topic with confidence.

explain demand and supply of money​

Sagot :

The money demand curve is downward sloping, i.e., the demand for holding money increases with decrease in interest rates. The short-term interest rate (i) is determined by the equilibrium of the supply and demand for money. If the interest rates are above the equilibrium, there is excess supply of money.