Demand for money in the money market is _____, while in the loanable funds market to demand for money is ____.
Question
Solution 1
In the money market, the demand for money is transactional. This means that people demand money for day-to-day transactions and immediate needs.
On the other hand, in the loanable funds market, the demand for money is for investment purposes. This means that businesses and individuals demand money Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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