81.   Loan demand was noticeably weak, with companies benefiting from increased Government spending and increased use of the capital market.

82.   These workers will only be employed if there is demand for the products they make -- for export, from the government or from the employers themselves.

83.   In the microeconomic market for a single good, an equilibrium is said to exist when the demand for the good is equal to the supply of it.

84.   This occurs when the total demand for all goods and services is equal to the total supply of these goods and services.

85.   It follows that there will only be one level of national income at which aggregate demand is equal to the total value of production.

86.   This mechanism ceases when the demand for money and supply of money are equal again.

87.   This reflects the monetarist view that the demand for money is interest-inelastic.

88.   Under what circumstances might the demand for money be perfectly interest-elastic?

89.   We saw in the previous chapter that equilibrium is achieved in the money market when the total demand for money is equal to the money supply.

90.   At interest rate Oi, where the speculative demand is perfectly elastic, the LM curve becomes horizontal.