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Decompose the liquidity preference demand for money function: Md= Dt(PY) + Da(R). That is, what are the different reasons we wish to hold money and
Decompose the liquidity preference demand for money function:Md= Dt(PY) + Da(R).
That is, what are the different reasons we wish to hold money and what are thesereasons/demands determined by (or a "function of")?
And, in our model of the economy, "where" & how is the equilibrium interest rate determined?
and why bond prices & interest rates are inversely related.
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