Equilibrium interest rate
How is the equilibrium interest rate in the money market estimated?
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This total demand illustrates the total amount of money demanded at every interest rate. The equilibrium interest rate is found out at the intersection of the net demand for money curve and the supply of money curve.
What happens while a bank charges discount interest on a loan? While a bank charges discount interest on a loan the required interest payment is subtracted through the loan proceeds at the time the loan is made. It makes the effective interest
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