Motives

Transactionary
P
Recentionary
-

7LasEd
speculative
-

*have
tl
Winterest
rate

Bank
Central bank
Money Supply -

-
supply more cagh

Decrease/increas Ms
to

nigh t
-

my
money ---
I
-

Market - ma

liquidity
-

t ms=
cow
Q
1001
=
.
money
Liquidity
of
preference
cash
amoun

-
BM Bd + Mt =
B + Ms
PB #-Bs=m-MDT

-
BS - BD
-

Mo-m'

&
S =

↓
·
Same value
B = Mo Ms=

I BD
Ap