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Q. Demand for money and GDP?
The demand for money also relies on the GDP as GDP is closely associated to national income. If you choose to hold a fixed proportion of your wealth as money, you would want to hold more money when Y increases (you will want to hold more bonds as well). In IS-LM model we presume that demand for money is positive function of GDP.
As demand for money relies on Y and R in the IS-LM model, we write MD(Y, R) for demand for money. Remember that it relies positively on Y but negatively on R.
The LM-curve in the AS-AD model The LM-curve will shift upwards (downward) when P is increases (decreases) in the AS-AD model is moved L
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During the year, Calabash Clinic made a $50,000 cash payment toward its bank loan which it had previously recorded; $40,000 was for principal, and $10,000 was to pay the full amoun
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