In the discussion about the Money Supply-Money Demand curve, the focus is on whether the equilibrium interest rate is the real or nominal interest rate and their implications for monetary policy evaluation. It is suggested that if monetary policy were effective, the real and nominal interest rates would be identical in shape, as constant inflation would maintain this relationship. However, concerns are raised about how changes in the money supply affect price levels, leading to fluctuations in nominal interest rates while real interest rates remain stable. This dynamic can distort the original curve when considering real versus nominal interest rates, highlighting the complexities in assessing monetary policy effectiveness.