The theory of asset demand also stressed the function of money as the store of value. This theory elaborates why individuals demand one asset or typical portfolio of assets over the other alternatives.
What is Asset?
Asset is a valuable resources that individual or company owns. It
Inflation is everywhere on newspaper, 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 regards, this article is an attempt to answer the following questions:
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 how it differs from classical theory of money demand.
Assumption of Two Assets World
Keynes assumed the two assets world, where people
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