Question: Decompose the liquidity preference demand for money function: M d = D t (PY) + D a (R). That is, what are the different reasons

Decompose the liquidity preference demand for money function:M^d = D_t(PY) + D_a(R).That is, what are the different reasons we wish to hold money and what are these reasons/demands determined by (or a "function of")?

And, in our model of the economy, "where" & how is the equilibrium interest rate determined?

Briefly explain withor withouta bit of maths, why bond prices & interest rates are inversely related.

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