6. Interest rate determination in the money market
Interacting with graphs to learn more about interest rate determination in the money market
In any economy, interest rates affect a large portion of spending, ranging from enormous business investment to ordinary consumer durable purchases. Obviously, we need to determine the factors that affect the level of interest rates in an economy. Because the interest rate is the price because it is the opportunity cost of holding money, we will analyze interest rates just like any other price: look at supply and demand curves!
Objectives
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