Economy, asked by deejah, 1 year ago

constituents of money market

Answers

Answered by Aasthachachan
1
Demand of and supply of money

deejah: but on google its not showing dese. i need to write an essay typ
Aasthachachan: The demand for money for transactionary and precautionary purposes is taken to be increasing function of national income. Demand for speculative purposes is a decreasing function of interest rate. At a very low rate of interest demand for money for speculative purposes become infinite. These constituents of money market together bring equilibrium in money market
Aasthachachan: In this situation supply remains constant
deejah: thankz a zillian
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