According to the Friedman theory, if the difference between the return on stocks and money rises, the demand for real money balances will rise.

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According to the Friedman theory, if the difference between the return on stocks and money rises (meaning stocks become more attractive compared to holding money), the demand for real money balances will actually decrease, as people prefer to invest in stocks rather than hold money.

According to the Friedman Theory, If the Difference Between the Return