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What does Demand for the Money mean?

幫考網校2020-10-22 16:37:34
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Demand for money refers to the desire of individuals and businesses to hold liquid cash or cash equivalents, such as bank deposits, rather than investing it in other assets. It is influenced by various factors such as interest rates, inflation, economic conditions, and personal preferences. The demand for money is an important concept in macroeconomics as it affects the overall level of economic activity and the effectiveness of monetary policy.
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