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Explain the impact of the asset demand, transaction demand, & total demand for money on the economy.
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Explain the impact of the asset demand, transaction demand, & total demand for money on the economy.

User Raheem
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Asset demand varies inversely with the interest rate, since that is the price of holding idle money. Total demand for money will equal quantities of money demanded for assets plus that for transactions. At any interest rate below the equilibrium rate, there is an excess demand of money.
User RobF
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