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Questions › JNU › JNU SSS 2019 › Q47
1 markMacroeconomics › Demand for money and monetary theories › The quantity theory of money and velocityHardabout 2 min

JNU SSS 2019 Question 47: Demand for money and monetary theories

Assertion (I): Friedman argues that money demand function is a stable function.

Reasons (II): Friedman treats money as one type of asset in which wealth holders can keep a part of their wealth.

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Demand for money and monetary theories has come up 82 times in 7 exams since 2005.

What this question tests

This question is on The quantity theory of money and velocity, part of Demand for money and monetary theories in Macroeconomics.

The link between the money stock, prices and output through velocity.

TestStop has 30 past-paper questions on this subtopic; the nearest in year are below.

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