A system of linear equations that has at least one solution is called ________, whereas a system of linearequations that has no solution is called ________.
Chapter 15: Interest Rates and Monetary Policy Interest Rates The price paid for the use of money It represents two things: o Cost of borrowing o Reward for lending Many different interest rates Speak as if only one interest rate Determined by the money supply and money demand Demand for money o Why hold money o Asset demand, Da Money as a store of value Varies inversely with the interest rate o Total money demand, Dm Equilibrium Interest Rates o Changes with shifts in money supply and money demand o We will focus on changes of money supply because that’s all the FED has control over o FED can influence supply of money by usi
