Image: Money Market diagram
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Description: M/P is is the real money supply curve. L(i,Y) is the real money demand curve: the liquidity curve. Their intersection is the money market equilibrium, which defines an equilibrium interest rate.
Title: Money Market diagram
Credit: Own work
Author: NilsTycho
Usage Terms: Creative Commons Attribution-Share Alike 3.0
License: CC BY-SA 3.0
License Link: https://creativecommons.org/licenses/by-sa/3.0
Attribution Required?: Yes
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