One determinant of money demand that Friedman considers but Keynes does not is
A) output.
B) the return on stocks.
C) the unemployment rate.
D) none of the above.

Question

Quizplus · Accepted Answer

Friedman's theory of the demand for money includes a broader range of determinants than Keynes's theory, including the return on stocks and other assets. Keynes's theory primarily focused on income (output) and the interest rate, not directly considering the returns on stocks or the unemployment rate as determinants of money demand.

One Determinant of Money Demand That Friedman Considers but Keynes