The money demand curve plots the relationship between interest rates and the quantity of money we use or hold as cash. In this case, money means currency, checking accounts and travelers' checks. This is money that people generally use for transaction purposes.
What is Money Demand - Key Concept
The money demand curve plots the relationship between interest rates and the quantity of money we use or hold as cash. In this case, money means currency, checking accounts and travelers' checks. This is money that people generally use for transaction purposes.
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