What Do Economists Mean by the Demand for Money

What Do Economists Mean By The Demand For Money?

What do economists mean by the demand for​ money? It is the amount of money-currency and checking account deposits-that individuals hold. … If the FOMC orders the trading desk to sell Treasury​ securities, the money supply curve will shift to the​ left, and the equilibrium interest rate will rise.

What do economists mean by the demand for money ‘?

In monetary economics, the demand for money is the desired holding of financial assets in the form of money: that is, cash or bank deposits rather than investments. It can refer to the demand for money narrowly defined as M1 (directly spendable holdings), or for money in the broader sense of M2 or M3.

Sarah Jenkins

Sarah Jenkins

Senior Technology Editor & AI Specialist

Sarah Jenkins is a veteran tech journalist with over 12 years of experience covering artificial intelligence, mobile innovations, and digital ethics. Her insights have appeared in leading technology publications worldwide.

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