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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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What are the determinants of money demand in an economy?
discuss the determinant of money demand
What happens to money demand when there is an increase in interest rates?
money demand will decrease
What is the relationship between demand for money and interest rates?
as interest rates increase, demand for money increases.
The interest rate falls if Answer a money demand shifts left or money supply shifts right b either money demand or money supply shifts left c money demand shifts right or money supply shi?
a
If consumers begin using credit cards for all of their purchases you would expect to see inc demand for money dec demand for money dec in quantity demanded of money?
decrease in the demand for money
What are the determinants of money demand in an economy?
discuss the determinant of money demand
What happens to money demand when there is an increase in interest rates?
money demand will decrease
What is the relationship between demand for money and interest rates?
as interest rates increase, demand for money increases.
The interest rate falls if Answer a money demand shifts left or money supply shifts right b either money demand or money supply shifts left c money demand shifts right or money supply shi?
a
If consumers begin using credit cards for all of their purchases you would expect to see inc demand for money dec demand for money dec in quantity demanded of money?
decrease in the demand for money
What is money in a checking account called?
Money in a checking account is called demand deposit.
What factors that affects the demand for money?
The major factors that affect the demand for money are price level, interest rates, economy, and the price of money.
What is global demand?
Total demand from all over the world.
How did countries react to the demand to convert paper money into gold?
The demand to convert paper money into gold was a demand beyond what the treasuries of countries could supply.
What would happen to the quantity of money people wish to hold when there is a decrease in the price level?
It would decrease, if there are lower prices, than people would naturally demand less of it. This is the quantity theory of money Money Demand= Price level*Income/Velocity of Money, what is important here is that Price level is in the numerator, so when it decreases the total quantity of money decreases as well.
What is The Total Revenue Rule?
if a price cut decreases total revenue, demand is elastic. if a price cut decreases total revenue, demand is inelastic. if a price cut leaves total revenue unchanged, demand is unit elastic.
What is aggregate demand'?
the total demand for final goods and services in the economy
