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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 |
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There is no answer at this time. |
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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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