Skip to main content
Business LibreTexts

20: Money Demand

  • Page ID
  • chapter objectives

    By the end of this chapter, students should be able to:

    1. Describe Friedman’s modern quantity theory of money.
    2. Describe the classical quantity theory.
    3. Describe Keynes’s liquidity preference theory and its improvements.
    4. Contrast the modern quantity theory with the liquidity preference theory.