MKT-3.C—Explain (using graphs as appropriate) how nominal interest rates adjust to restore equilibrium in the money market

Explain (using graphs as appropriate) how nominal interest rates adjust to restore equilibrium in the money market.

• Disequilibrium nominal interest rates create surpluses and shortages in the money market. Market forces drive nominal interest rates toward equilibrium.
• Enduring understanding MKT-3: In the money market, demand for and supply of money determine the equilibrium nominal interest rate and influence the value of other financial assets.