what are the constituent of money market? explain the step to restore equilibrium in good and money
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The following are the important constituents of money market:
1. Call Money Market
2. Collateral Loan Market
3. Acceptance Market
4. Bill Market
The IS/LM model combines the goods and money market equilibrium’s to form an aggregate model that describes a general equilibrium setting in the macroeconomy. This post will use a graphical approach to establish the intuition behind the building of the IS/LM framework which describes the money and goods markets. A later post will develop the IS/LM model by using matrix algebra and derivatives to analyze the interactions between the money and the goods markets in the macroeconomy.
Hope this helps!!!
1. Call Money Market
2. Collateral Loan Market
3. Acceptance Market
4. Bill Market
The IS/LM model combines the goods and money market equilibrium’s to form an aggregate model that describes a general equilibrium setting in the macroeconomy. This post will use a graphical approach to establish the intuition behind the building of the IS/LM framework which describes the money and goods markets. A later post will develop the IS/LM model by using matrix algebra and derivatives to analyze the interactions between the money and the goods markets in the macroeconomy.
Hope this helps!!!
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