The demand for money in the economy sometimes for the motive of transactions, speculation, and precaution. The macroeconomic balance in the presence of money is shown by the curve following. A. How do...

The demand for money in the economy sometimes for the motive of transactions, speculation, and precaution. The macroeconomic balance in the presence of money is shown by the curve following. A. How do you read and understand the following curve? B. The relationship between the demand for money for transactions and the demand money for this speculation why the angle is 45°? In graph explain what happens when there are: A. monetary contraction! B. monetary expansion!


Extracted text: 450 Money request for speculation Money request for transactions