Example sentences of "[adj] demand [prep] money " in BNC.
Next page| No | Sentence |
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| 1 | Why does an unstable demand for money make it difficult to control the supply of money ? |
| 2 | The problem of an unstable demand for money . |
| 3 | With an unstable demand for money , it is difficult to predict the effect on interest rates of a change in money supply . |
| 4 | The transactions-plus-precautionary demand for money ( L 1 ) depends primarily on the level of national income , the frequency with which people are paid and institutional arrangements ( such as the use of credit or debit cards ) . |
| 5 | This demand for money arises to enable the community to fulfil its planned expenditures during the intervening periods between receipts of wages , salaries or other forms of income . |
| 6 | This demand for money arises out of consumers ' desires to provide for unexpected , and therefore unplanned , expenditures . |
| 7 | This demand for money is also likely to depend on national income : the higher the total value of transactions , the more money will be needed to guard against unexpected transactions . |
| 8 | Before examining the nature of this demand for money , however , we first have to understand the relationship between the price of a bond and the rate of interest . |
| 9 | The main problem with this demand for money function is that of finding a method of measuring total wealth . |
| 10 | As a result any given percentage change in speculative balances will cause a relatively large percentage change in the overall demand for money . |
| 11 | The problem is more acute if the overall demand for money is inelastic and is subject to fluctuations . |
| 12 | Now denoting the nominal demand for money by MD , we can write in functional form : unc A simplified version of this function can be obtained by using real national income ( Y ) as an indicator of total wealth and by assuming that h is constant and that the function is homogeneous of the first degree in P. We can then write the real demand for money as : unc Monetarists generally believe the demand for money to be fairly unresponsive to interest rate changes ( and this is supported by empirical evidence ) . |
| 13 | In this theory , the real demand for money is proportional to real output ( and does not depend on interest rates at all ) . |
| 14 | Friedman sees the real demand for money ( M D /P ) as depending on total wealth ( W ) , the expected rates of return on the various forms of wealth ( r ) , the ratio of human wealth to non-human wealth ( w ) and society 's tastes and preferences ( T ) . |
| 15 | Thus , there is also an inverse relationship between the rate of inflation and the real demand for money . |
| 16 | What factors influence these three demands for money ? |
| 17 | The nominal demand for money is a stable function of a list of variables which might include the following : ( a ) Total wealth ( W ) . |
| 18 | Since the purchasing power of a given sum of money depends inversely on the price level , there will be a direct relationship between the price level and the nominal demand for money . |
| 19 | Now denoting the nominal demand for money by MD , we can write in functional form : unc A simplified version of this function can be obtained by using real national income ( Y ) as an indicator of total wealth and by assuming that h is constant and that the function is homogeneous of the first degree in P. We can then write the real demand for money as : unc Monetarists generally believe the demand for money to be fairly unresponsive to interest rate changes ( and this is supported by empirical evidence ) . |
| 20 | Or unc In equilibrium , the nominal demand for money equals the nominal money supply so that : unc ( 1 ) Now any increase in the nominal money supply will create an excess supply of money which will lead to an adjustment of portfolios as people attempt to spend their excess money holdings . |
| 21 | The increased demand for goods and services , however , leads to an increase in the output or prices of these goods and services , so that the nominal demand for money increases at every interest rate . |
| 22 | However , some may feel that there is more to footing a bill than merely paying it : there is a hint of reluctance , of the imposition of an unwelcome demand for money on the payer , which renders the equivalence of the contrasts in 17 slightly suspect . |
| 23 | Apart from wanting to control the domestic demand for money , there is another reason why the Bank of England sometimes alters interest rates . |
| 24 | The general attempt to sell bonds will tend to drive down the price of bonds and raise their rate of interest , and this will help eliminate the excess demand for money , since the higher the rate of interest the lower the demand for money . |
| 25 | Thus in Figure 17.5 , if the authorities keep interest rates at r 1 , and yet do not allow money supply to expand beyond Q 2 , there will be excess demand for money of Q 1 — Q 2 . |
| 26 | For example , in Figure 17.7 , if interest rates are to be kept at r and money supply at Q 2 , the excess demand for money Q 1 — Q 2 can be eliminated by rationing . |
| 27 | Similarly , at interest rates below Oi l , the excess demand for money exerts upward pressure on interest rates . |
| 28 | The final result is just as the simple quantity theory states , except that the monetarist view explains the process by reference to a stable demand for money function and an exogenously determined money stock which is under the control of the monetary authorities . |
| 29 | A policy of controlling interest rates is likely to cause a more stable demand for money , with fewer shifts in the speculative demand . |
| 30 | But conversely if the government raises interest rates the supply of money may fall in response to a lower demand for money . |