The
liquidity
preference
model
of
the
interest
rate
says
that
the
interest
rate
is
determined
by
the
____________________
and
____________________
for
money
.
The
money
supply
curve
(
MS
)
show
the
relationship
between
the
quantity
of
money
supplied
by
a
____________________
____________________
and
the
interest
rate
.
A
central
bank
can
increase
or
decrease
the
____________________
____________________
.
Central
banks
usually
increase
or
decrease
the
money
supply
through
____________________
-
____________________
____________________
,
which
are
the
buying
or
selling
of
Treasury
bills
.
To
increase
or
decrease
the
money
supply
,
central
banks
can
also
____________________
via
the
discount
window
.
Central
banks
can
change
____________________
____________________
to
increase
or
decrease
the
money
supply
.
Money
market
equilibrium
is
where
MS
and
MD
____________________
.
