Discuss the justification for the use of permanent income in a money demand function. Assuming that adaptive

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Discuss the justification for the use of permanent income in a money demand function.

Assuming that adaptive expectations are to be used to derive permanent income, derive the estimating money demand equation.

Discuss the suitability of rational expectations for estimating permanent income.

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Monetary Economics

ISBN: 9780415772099

2nd Edition

Authors: Jagdish Handa

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Question Posted: Nov 12, 2024 03:00 AM

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Discuss the justification for the use of permanent income in a money demand function. Assuming that adaptive

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Monetary Economics

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