Economics

Discuss on Demand for Money

Discuss on Demand for Money

Principle objective of this article is to Discuss on Demand for Money. Here analysis Demand for Money in economics point of view. The demand for money is affected by several factors, including the amount of income, interest rates, and inflation as well as uncertainty about the future. The way in which usually these factors affect money demand is usually explained regarding the three motives intended for demanding money: the transactions, the precautionary, and this speculative motives. Here briefly discuss on these three motives with examples.