Social Sciences, asked by bvvdprasad94, 3 months ago

the demand of money & value of money ?

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Answered by Hoseok07

5

Answer:

The demand for money is related to income, interest rates and whether people prefer to hold cash(money) or illiquid assets like money. This shows that the demand for money is inversely related to the interest rate. At high-interest rates, people prefer to hold bonds (which give a high-interest payment).

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