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Keynesian Theory of Money Demand

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

Classical Theory of Money Demand

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 and implications of theory after reading this article. But before, we advise you to read the

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