Quantity of money – Essaylink
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Free InquiryWhy do people hold money? How will an increase in the interest rate influence the amount of money that people will want to hold?
How would each of the following influence the quantity of money you would want to hold?
a. an increase in the interest rate earned on checking deposits
b. an increase in the expected rate of inflation
c. an increase in incomed. an increase in the differential interest rate between money market mutual funds and checking deposits
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