Demand for money, Managerial Economics

Assignment Help:

Demand for money 

The demand for money is a more difficult concept than the demand for goods and services.  It refers to the desire to hold one's assets as money rather than as income-earning assets (or stocks).

Holding money therefore involves a loss of the interest it might otherwise have earned.  There are two schools of thought to explain the demand for money, namely the Keynesian Theory and the Monetarist Theory.

The demand for money and saving

The demand for money and saving are quite different things.  Saving is simply that part of income which is not spent.  It adds to a person's wealth.  Liquidity preference is concerned with the form in which that wealth is held.  The motives for liquidity preference explain why there is desire to hold some wealth in the form of cash rather than in goods affording utility or in securities. 


Related Discussions:- Demand for money

Volatility of the stock market, You have been provided with daily data star...

You have been provided with daily data starting in January 2009 on the main New Zealand stock market index, the NSX-50. Choose a suitable model for measuring volatility on the New

Regression Analysis, Use a computer regression package, to work these two c...

Use a computer regression package, to work these two computer exercises. 2. Ozark Bottled Water Products, Inc. hired a marketing consulting firm to perform a test marketing of its

Balance of payments, BALANCE OF PAYMENTS The Balance of Payments of a ...

BALANCE OF PAYMENTS The Balance of Payments of a country is a record of all financial transactions between residents of that country and residents of foreign countries.  (Resi

Practical importance of knowledge-price elasticity of demand, Practical Imp...

Practical Importance of the knowledge of Price Elasticity of demand The practical importance of the measures of elasticity of demand is to be appreciated in various ways:

Managerial principles, managerial principles to consider when determining l...

managerial principles to consider when determining level of output of afirm

Principles of an optimal tax system, PRINCIPLES OF AN OPTIMAL TAX  SYSTEM ...

PRINCIPLES OF AN OPTIMAL TAX  SYSTEM When taxes are imposed certain conditions must be fulfilled.  These conditions are known as Principles or canons of taxation. According to

What is data mining, Q. What is Data mining? Data mining: Data mining...

Q. What is Data mining? Data mining: Data mining is the process of extracting patterns from data. Data mining is seen as an increasingly important tool by modern business to

Qt, applicatiopn of qt in managerial decision making

applicatiopn of qt in managerial decision making

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd