Example sentences of "transaction demand for money " in BNC.
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1 | For a given real money supply , the higher the level of income , the higher the rate of interest must be to allow the transactions demand for money to be met . |
2 | If the curve is steep the implication is that an increase in government spending increases income , which increases the transactions demand for money , which increases interest rates , which chokes off private investment . |
3 | Will students in receipt of a grant or an allowance who are paid once per term have a high or a low transactions demand for money relative to their income ? |
4 | The rise in income will be less than that shown in diagram ( c ) , however , since any rise in income will lead to a rise in the transactions demand for money , L 1 . |
5 | This is because the increased national income will cause an increased transactions demand for money . |
6 | In such a case the rise in the transactions demand for money will match the rise in the supply of money . |
7 | The interest rate mechanism works as follows : ( a ) a rise in money supply causes money supply to exceed money demand ; interest rates fall ; ( b ) this causes investment to rise ; ( c ) this causes a multiplied rise in national income but ( d ) as national income rises so the transactions demand for money will rise , thus preventing quite such a large fall in interest rates . |
8 | This would reduce aggregate demand directly and thus reduce the transactions demand for money . |
9 | If people think inflation will rise , the transactions demand for money may rise . |
10 | Similarly , a consumer boom , to the extent that it increases the transactions demand for money and increases imports , will encourage the authorities to increase interest rates in order to keep money supply on target . |
11 | The transactions demand for money arises because individuals receive their incomes weekly or monthly and yet have to pay for many of the goods and services they buy on a day-to-day basis . |
12 | Using functional notation , we can write where L , is the transactions demand for money . |
13 | Note that for a given level of income , the transactions demand for money would rise if more households were paid fortnightly or monthly rather than weekly . |
14 | The household 's average holding of money ( that is , its transactions demand for money ) is £50 . |
15 | The transactions demand for money . |
16 | In what follows , we ignore the possibility of such institutional changes and assume that the transactions demand for money depends only on money national income . |
17 | transactions demand for money |
18 | Graph ( c ) shows the direct relationship between the transactions demand for money ( L t ) and national income . |
19 | Note that the reason for the rise in the equilibrium rate of interest is that the higher income level will have brought forth an increased transactions demand for money . |
20 | The reason for this is that every income level ( which determines the transactions demand for money ) must now be associated with a lower interest rate and therefore a higher speculative demand for money if equality between the total demand for and supply of money is to be maintained . |