When the money market is drawn with the value of money on the vertical axis,long-run equilibrium is obtained when the quantity demanded and quantity supplied of money are equal due to adjustments in
A)the value of money.
B)real interest rates.
C)nominal interest rates.
D)the money supply.

Question

Quizplus · Accepted Answer

In the money market, long-run equilibrium is achieved when the quantity of money demanded equals the quantity supplied, and this is primarily adjusted through changes in the value of money, which affects the price level and purchasing power.

When the Money Market Is Drawn with the Value of Money