Money-market equilibrium

Money-market equilibrium

Bachelor of Business Studies (BBS) — Second Year

Subject: Macroeconomics for Business (MGT 209)

Unit 5: IS-LM Model of Income Determination

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of money-market equilibrium.
• Explain the economic model or issue, identify its assumptions and interpret the relevant diagrams, calculations or dated evidence.

Curriculum Scope

• LM-curve derivation
• Money-market equilibrium

Detailed Microsyllabus

1. LM derivation

   1. Money demand, money supply and money-market equilibrium.
   2. Income and interest in money demand.
   3. Derive equilibrium combinations.

2. LM interpretation

   1. Slope and economic reasoning.
   2. Movements along the curve versus shifts.
   3. Monetary factors changing its position.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 24-26.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here. Nepalese current-status discussions should identify the reporting period and use dated official publications, such as Nepal Rastra Bank reports, rather than undated figures.