Keynesian Liquidity Preference Theory of Interest | Microeconomics
In this article we will discuss about:- 1. Demand for Money 2. Relation between the Rate of Interest and the Price of Bonds 3. Relation between the Rate of Interest (r) and the Speculative Demand for Money (L2) 4. Demand for Money in Aggregate 5. Supply of Money 6. Determination of the Equilibrium Rate of Interest 7. Critical Evaluation. Contents: [...]