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A.
when the demand and supply of money are equal
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B.
when demand is greater than supply of money
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C.
when demand is less than supply of money
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D.
when supply is greater than demand for money
Correct Answer: Option A
Explanation
The money market is in equilibrium when the demand & supply of money are equal i.e L = μ
where L = money demand, μ = money supply
Thus μ = LT(γ) + Ls(r)
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