What will happen to the demand for money - what if expected, Financial Management

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What will happen to the demand for money - what if expected

Suppose that expected inflation rises by 3 percent at the same time that the yields on money and on non money assets both rise by 3 percent. What will happen to the demand for money?

What if expected inflation rose by only 2 percent? What if the yield on non money assets rose by 4 percent?

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Financial Management: What will happen to the demand for money - what if expected

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Financial Management: What will happen to the demand for money - what if expected

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