Economy, asked by tua95, 1 month ago

How is equilibrium rate of interest determined in Keynesian theory of liquiduty preference?​

Answers

Answered by dhruvpipariya2006
2

Answer:

According to Keynes, the rate of interest is determined by the demand for money and the supply of money. OM is the total amount of money supplied by the central bank. At point E, demand for money becomes equal to the supply of money. Thus, the equilibrium interest rate is determined at

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