Examlex
In the business market, what is an important factor for a purchasing firm who is buying installations?
Money Demand
The desire to hold cash or cash equivalents based on liquidity preference, influenced by interest rates, income levels, and transaction needs.
Interest Rate
The cost of borrowing money or the reward for saving, typically expressed as a percentage of the principal amount per annum.
Nominal Interest Rate
The interest rate before adjustments for inflation, reflecting the rate at which money can be borrowed or lent.
Money Demand Curve
A graph that shows the relationship between the interest rate and the total amount of money held by the public.
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