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What is an asset demand for money?


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Wiki User
2007-12-07 20:46:44
2007-12-07 20:46:44

Money held as a form of wealth.

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Asset demand for money is dependent on interest rates. The money slope goes down if interest rate goes down. In contrast, money slope goes up if interest rate goes up.

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the asset value which changes with respect to the demand constraints is called varible asset

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According to John Maynard Keynes, the total demand for money is composed of transactional demand, precautionary demand and speculative demand for money.

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The account itself is not an asset, but any money credited to the account is.


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