Question: Using the Liquidity preference theory, show in a graph how the following event affects the supply and demand for money and the equilibrium nominal interest
Using the Liquidity preference theory, show in a graph how the following event affects the supply and demand for money and the equilibrium nominal interest rate. Explain in words as well (3 points) Due to the development of transaction technologies (such as wire transfer and easy to use ATM machines), people decided to carry less money (cash)
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