The nominal money demand is defined as

Name: The nominal money demand is defined as
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Question

Quizplus · Accepted Answer

Nominal money demand is defined as the amount of money that people want to hold in the form of cash to carry out transactions. It depends on the level of income and the prevailing interest rate. Thus, the correct equation is M = P L (Y, r), where M is the nominal money demand, P is the price level, Y is the level of income, and r is the interest rate. Therefore, the correct choice is B.

The Nominal Money Demand Is Defined as A) MP=L(Y,1+r)\frac { M } { P } = L ( Y , 1 + r )PM​=L(Y,1+r)

The Nominal Money Demand Is Defined as
A) $\frac { M } { P } = L ( Y , 1 + r )$