Question
Because of high inflation, people start to use foreign currency for large payments. If people start to use foreign currency for large payments, the demand
- Because of high inflation, people start to use foreign currency for large payments.
If people start to use foreign currency for large payments, the demand for monetary base will decrease.
I thought money demand=py/v, so since the velocity of money of country currency decreases, money demand should increase?
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Business Its Legal Ethical and Global Environment
Authors: Marianne M. Jennings
11th edition
1337103578, 978-1337514392, 133751439X, 978-0357690130, 978-1337103572
