between the classic and Keynesian demand functions for money liquidity also

Between the classic and keynesian demand functions

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between the classic and Keynesian demand functions for money (liquidity), also highlight their impact on the money (nominal) rate of interest and the quantity demanded. In both instances assume an inelastic supply of money when explaining movement of liquidity demand. Do this comparison in terms of: Movement on the money demand function as well as of money demand function and the factors which drives such movements. The impact of such movement and changes in the demand functions on the money rate of interest and on the quantity of liquidity demanded. Demonstrate in a graph how expectations on a future change short run interest will impact on the quantity of money demanded. Demonstrate in an alternative graph the difference in the impact on the quantity of money demand when certainty on what the change in short run interest in future will be.
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Part B Individual work assigned to be completed for marking and remediation in Tutorial 5 (ii) Differentiate between the demand elasticity for money of the poor in contrast to that of the rich (in both the classic and the Keynesian theory). Use this knowledge to show: How a decrease in the supply of money will impact in a different way on the poor and the rich in terms of the interest and the quantity impacts. What the impact on the cost of money and the quantity of liquidity demanded of the respective groups will be by assuming certainty exist on the quantity that money supply will decrease in future where the interest rate is relative low. What the impact will be if the interest rate is relative low and a decrease in the supply of money is expected. The impact: - First for the poor - Then for the rich For which of the 2 groups cost of money will be increased the most in an uncertain monetary environment (as assumed in the latter)? Repeat the latter exercise but now assume the supply of money is expected to increase rather than to decrease.
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