The purpose of this Tutorial Sheet is for you to understand how the money market works. It involves understanding (1) the determinants of demand for money and demand for treasury bills, (2) the relationship between the price of treasury bills and the interest rate, (3) how the balance is determined in this market and how it can be changed.

Access to this content (Tutorial Sheet 5 of the Macroeconomics course) is strictly reserved for students registered in first year license in economics at ISAEG.

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