Money Demand

EC4004 Economics for Business Lecture 8Stephen Kinsella | www.stephenkinsella.net

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Recap

Functions of Money

Money Demand/Supply Extension

Money

Monetary Aggregates

Demand for MoneyPC + ∆B + P·∆K = π + wL + i · ( B+ PK)

The Money-Demand Function

Md = P·L(Y, i)

Md/P = L( Y, i)

Price Level Determination

Prices in Cyclical

Fluctuation

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