The Economics of Money, Banking, and Financial Markets 10th Edition by Frederic Mishkin

تمرين 11

Some payment technologies require infrastructure (e.g., merchants need to have access to credit card swiping machines). In most developing countries, this infrastructure is either nonexistent or very costly. Everything else being equal, would you expect the transaction component of the demand for money to be greater or smaller in a developing country than in a rich country?