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According to the liquidity preference model, the equilibrium interest rate is determined by the: International Monetary Fund. supply of and demand for money. supply of and demand for loanable funds. level of investment spending and saving.

Respuesta :

Answer:

Supply of and demand for money.

Explanation:

The equilibrium interest rate is determined by the demand and supply of the money. The interest rate is represented by the verticle axis of the graph and supply and demand for money is represented by the horizontal axis. Thus, the point of intersection between supply curve and demand curve determines the equilibrium interest rate.

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