Question

what are the determinants of demand for money?explain the keynasian version in this regard​

Answer 1

Answer:

The demand for money depends on three main factors: national income, the price level and the rate of interest. Transactions demand and precautionary demand vary directly with the first two factors but speculative demand for money vary inversely with the market rate of interest.

Aggregate demand in Keynesian analysis  :

#Aggregate demand is the sum of four components: consumption, investment, government spending, and net exports.

#Consumption can change for a number of reasons, including movements in income, taxes, expectations about future income, and changes in wealth levels.

Explanation:

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