Question

how to find equlibrium levelof income and equlibrium rate of intrest​

Answer 1

Explanation:

For the equilibrium of the 'monetary sector' rate of interest and the level of income must be such that the supply of money equals the demand for it (M = L). The commodity sector is in equilibrium if the rate of interest and the level of income are such that they equate savings and investment (S = I).