asset demand

What Is The Basic Determinant Of A The Transactions Demand For Money?

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What Is The Basic Determinant Of A The Transactions Demand For Money? The basic determinant of the asset demand for money is interest rate. The asset demand varies inversely with interest rate, that is, the higher the interest rate, the smaller the amount of money demanded as asset. The two demands combines together to determine

What Is Total Demand For Money?

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What Is Total Demand For Money? Total demand for money will equal quantities of money demanded for assets plus that for transactions. The demand curve for money illustrates the inverse relationship between the quantity demanded of money and the interest rate. … At any interest rate above the equilibrium rate, there is an excess supply