Slide 11 The Demand For Money Dont people always want as much money as possible? Yes But when we speak about demand for something, we dont mean amount people would desire…
Slide 1 Connecting Money and Prices: Irving Fisher’s Quantity Equation M × V = P × Y The Quantity Theory of Money V = Velocity of money The average number of times each…
Slide 1 THE MONEY MARKET Slide 2 Objectives What is the money demand curve? How does the liquidity preference model determines the interest rate in the short run? Slide 3…