What is the equilibrium interest rate formula
The demand for money and supply of money can be graphed to determine the equilibrium interest rate. The equilibrium interest rate is the rate of interest at Originally Answered: How is the equilibrium interest rate determined in the market for money? Can you explain the formula used for calculating interest rate? The demand for money in a country is given by: Md = 200000 - 200000r +Y Where Md is money demand in dollars, r is the interest rate (a 10% interest rate = r