money demand and market equilibrium
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Last updated 11:17 AM on 4/18/25
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9 Terms
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Money demand =transaction demand+asset demand
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Transaction demand for money(buy stuff)
Shifters(income and desire to save
Technological factor(use credit card)
Nominal national income increase
Value of transaction increase and money transaction increase (
Hold more money for transaction
Desire to save decrease
Value of transaction increase
Money transaction increase
Advancement of payment technology
Cashless transaction increases(hold less money for transaction )
Money transaction decreased
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Asset demand for money (liquid assets to store wealth)
Features
nominal rate of return =0%
Month is least risky and most liquid asset
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Note 
Flashcards (29)