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Q: Principles of economics ( No Answer,   2 Comments )
Question  
Subject: Principles of economics
Category: Miscellaneous
Asked by: mavura-ga
List Price: $2.00
Posted: 07 Apr 2006 17:07 PDT
Expires: 07 May 2006 17:07 PDT
Question ID: 716629
why do people demanmd money, as far as as Keynes is concerned
Answer  
There is no answer at this time.

Comments  
Subject: Re: Principles of economics
From: frde-ga on 08 Apr 2006 06:56 PDT
 
Three reasons

1) Transactional  - cash in pocket (no plastic in those days)
2) Precautionary  - keep a stash
3) I have forgotten - probably speculation

Why not re-read his 'General Theory' ?
- it is digestable, a fairly thin paperback also IIRC devoid of
drawings, which can be a help, but can also be a diversion.

You will score massive marks if you can distinguish between Keynes and
Sir John Hicks ... if your examiners understand either.

Look at 'Satisficing'
Subject: Re: Principles of economics
From: reinedd-ga on 10 Apr 2006 09:49 PDT
 
http://members.shaw.ca/h-chartrand/Macro%20+%203.2e.htm
The demand for money in the Keynesian Model, however, is not the same.
 Assuming income can be held either as money, spent or converted into
interest earning assets (bonds), for Keynes there were three main
reasons for holding money as cash:

i) transaction demand

ii) precautionary demand; 

iii) speculative demand; and,

iv) total demand.

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