Equilibrium in the Money market will change if there is ?
Correct answer: D. any of the above
- A. a change in the real money supply
- B. a change in real income
- C. a change in competition in the banking industry
- D. any of the above
Explanation
Money-market equilibrium depends on both real money supply and money demand; real income shifts demand, while banking competition can affect the public's preferred money holdings and deposits. Thus each listed change can alter the equilibrium.
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