What is the formula for money demand?
Answer:
M^d = PY (x) L(i).
(+), (-)
Money demand depends on nominal income, and interests rates.
The smaller the interest rates, the higher the liquidity coefficient, L(i).
What is the formula for money demand?
Answer:
M^d = PY (x) L(i).
(+), (-)
Money demand depends on nominal income, and interests rates.
The smaller the interest rates, the higher the liquidity coefficient, L(i).