FIN 2102 Assign(1) cat.docx - LAURA TERESA AWUOR 19\/07071 ASSIGNMENT 3 FINANCIA INSTITUIONS AND MARKETS KEYNESIAN ANALYSIS WITH REGARD TO THEORIES OF

FIN 2102 Assign(1) cat.docx - LAURA TERESA AWUOR 19/07071...

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LAURA TERESA AWUOR 19/07071 ASSIGNMENT 3 FINANCIA INSTITUIONS AND MARKETS. KEYNESIAN ANALYSIS WITH REGARD TO THEORIES OF INTREST RATE Keynesian theory is a theory that says that the government should increase demand to boost growth. It believes that the rate of interest rate is purely a monetary phenomenon. The rate of interest rate in this theory is determined by money supply and money demand. The theory considered the three motives of holding money, namely transactional, precautionary and speculative. Price brings into balances the willingness to hold wealth in the form of cash with

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