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The theory of asset demand also stresses the function of money as the store of value. This theory elaborates on why individuals demand one asset or typical portfolio of assets over the other alternatives.
What is an Asset?
Asset is a valuable resource that an individual or
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Inflation is everywhere in newspapers, media, economic books, and reports. Even if you are economic and business enthusiastic, then better knowledge of inflation, its causes, and measurement tools can help bolster you. In this regard, this article is an attempt to answer the following questions:
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The Keynesian theory of money demand is also called liquidity preference theory. This article tries to explain about Keynesian theory of money demand and elaborate on how it differs from the classical theory of money demand.
Assumption of Two Assets World
Keynes assumed the two assets world,
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The purpose of this article is to make you know the different versions of the quantity theory of money along with underlying assumptions and flaws. Italian economist Davanzatti developed the quantity theory of money, and American economist Irving Fisher popularized it after his influential book
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When a company offers dividends and right shares, the stock exchange generally responds to that corporate action with the stock price adjustment of a corresponding company. What is the rationale for stock price adjustment and how is it done? This article is an attempt to
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In this article, we will try to explain the concept of national income accounting, methods of measuring national income, and the problems associated with the measurement of national income. Before reading this article, we recommend reading and understanding the important concepts of gross domestic product
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Quantity theory of money is a classical theory of money demand, why? You will understand the concept of money demand, reasons to hold money, classical theory of money demand, implications and criticism of theory after reading this article. But before, we advise you to read
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If you are a beginner and have just started to study production theories of microeconomics, so then you are in the right place to start from. After studying this article, you will learn the concepts of production, production function, and the concepts of total, average,
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This article is an attempt to explain how the NEPSE index is calculated, explain what is market capitalization of a company is, and explain what is total market capitalization of an economy is. In addition, it also explores how NEPSE adjusts the base period's market
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This article intends to describe the meaning of Gross Domestic Product (GDP), illustrate GDP with a hypothetical example, and GDP growth rate in very simple terms so that any starter of macroeconomics can understand it clearly. If you are new to macroeconomics and want to