Describe the effect of each of the following events on the
demand for money in the country according to the portfolio
theories of money demand:
a. The Central Bank increased the base interest rate, which
in turn increased the general interest rates in the country.
b. The Banking Regulation and Supervision Agency approved a new
electronic payment system which will make payments much more liquid
and with a reduced cost.
c. The stock market's main index in country’s Stock market is
getting more volatile in the recent months.
Describe the effect of each of the following events on the demand for money in the country according to the portfolio th
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