Documents Money Demand. Standard specification: (M/P) = f(Y, r) M = Monetary aggregate P = Price level Y =...

Slide 1 Money Demand Slide 2 Standard specification: (M/P) = f(Y, r) M = Monetary aggregate P = Price level Y = income r = interest rate  Why money demand?  Why does…

Documents Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 8-1 CHAPTER 8 Money,...

CHAPTER 8 Money, Prices, and Inflation Questions What do economists mean by “money”? Why is money useful? What do economists mean when they say that money is a unit of…