Economy, asked by melvinlty5537, 1 year ago

Summary of baumol's inventory theoretic approach

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Answered by Anonymous

Baumol's Inventory Approach to Transactions Demand for Money: Instead of Keynes's speculative demand for money, Baumol concentrated on transactions demand for money and put forward a new approach to explain it. ... This interest income forgone is the cost of holding money for transactions purposes.

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