The demand for money is a demand for real balances because individuals hold money because of its purchasing power.

Name: The demand for money is a demand for real balances because individuals hold money because of its purchasing power.
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The demand for money is indeed for real balances, as individuals value money for its ability to purchase goods and services, which is determined by its purchasing power over real goods and services, not merely the nominal amount of money held.

The Demand for Money Is a Demand for Real Balances