Theories of Money Demand (Chapter 20)
Studied by 0 people
Call with Kai
Knowt Play
Learn
Practice Test
Spaced Repetition
Match
Flashcards1/7
There's no tags or description
Looks like no tags are added yet.
Name | Mastery | Learn | Test | Matching | Spaced |
|---|
No study sessions yet.
8 Terms
Baumol-Tobin Model - N equation
Baubol-Tobin Model - Money demand equation
Quantity Theory of Money - Equation of exchange
MV = PY
Quantity theory of money - What happens if people often use credit cards? (PY constant)
M falls so V increases
Quantity theory of money - What happens if people often use debit cards? (PY constant)
M increases so V falls
Quantity Theory - inflation formula
Cambridge Money Demand - equation for money demand
Keynes Liquidity Preference
Motives for holding money
Transactions demand: $ to carry out transactions
Precautionary demand: people hold $ as a buffer to cover unexpected expenses or emergencies
Speculative demand: people hold $ to take advantage of potential future changes in interest rates or bond prices
Note 
Flashcards (87)