Decompose the liquidity preference demand for money function: M d = D t (PY) + D a (R).
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Decompose the liquidity preference demand for money function: Md =

Dt(PY) + Da(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 with—or without—a bit of maths, why bond prices & interest rates are inversely related.

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