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Transaction demand and speculative demand for money, and the LM curve

posted by: Salman on 2011-12-07
tagged: money-supply
score: 0

I’ve read about the LM curve when studying money market.

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It is said that speculative demand for money is higher than transaction demand for money above the LM curve, and the other way round. What is the correct explanation for this?

The question probably lacks details but if you ask I will try to post what I have found out so far.

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