Securing Higher Grades Costing Your Pocket? Book Your Coursework Help at The Lowest Price Now!

  • +1-617-874-1011 (US)
  • +44-117-230-1145 (UK)
Online Customer Service

Money demand

  45 Download     📄   2 Pages / 445 Words

Abstract

Money demand is an important aspect for any economy.

Money demand is said to be dependent on the RGDP, inflation, exchange rate and interest rate.

Data has been collected for Algeria country for all the four variables from 1980 to 2015.

money demand sample assignment image 1

The trend of demand of money and RGDP is similar. The demand of money is represented by M2. The log of demand and RGDP is taken here in this model.

The demand of money decreased during the 1995 period but then it increased. The demand decreased from 1985 to 1995 slowly then it started increasing. At the same it is visible that the inflation rose for the economy drastically. As the inflation subsided the demand of money showed an increased.

The exchange rates for Algeria have been decreasing after increasing in the initial years. Then the rates decreased and it becomes flattish for the last few years. Inflation shows a lot variation however overall it decreased.

The interest rate for Algeria shows a lot of variation, in near 1985 to 1991 the interest rate decreased sharply showing a rate below -10%. However it increased from 1991 till 1998 to interest rate that is above negative nearly 15%.

RGDP also shows a uptrend. However, it has not been a complete uptrend. It shows three main uptrends.

Correlation Analysis

Below table gives the correlation between the variables:

money demand sample assignment image 2

Correlation between the variables shows demand of money is positively correlation with RGDP for Algeria. The value is 0.94 which indicates that there is strong positive correlation.

Correlation of demand of money with inflation and exchange rates is negative. This means that with these two variables move in opposite direction. This also is visible from the graph.

Correlation between the variables of demand of money and interest rate is 0.425 and it is positive correlation.

money demand sample assignment image 3

Descriptive Statistics

Descriptive statistics for all the variables is shown below:

money demand sample assignment image 4

Mean of demand of money is 24.26, maximum value is 25.45 and minimum value is 23.3. There is not much of variation in demand of money.

Mean of log of RGDP is 24.77, maximum value is 25.68 and minimum value is 23.99.

Mean of LXR is 5.03 the maximum value is 6.08 and the minimum value is 4.58.

Mean of inflation is 0.09 and maximum value is 0.31 and minimum value is 0.003. Thus, inflation has shown a lot of variation.

Mean of IR is -2.17 and the maximum value is 21.6 and the minimum value is -29.7

We have used logarithm to (money, RGDP, XR). We got LM2 and RGDP by dividing them by consumer price index (CPI).

This problem has been solved.


Please send an Email to help@urgenthomework.com with the Payment ID and the link to the document to collect by email


Cite This work.

To export a reference to this article please select a referencing stye below.

Urgent Homework (2022) . Retrive from https://www.urgenthomework.com/sample-homework/money-demand

"." Urgent Homework ,2022, https://www.urgenthomework.com/sample-homework/money-demand

Urgent Homework (2022) . Available from: https://www.urgenthomework.com/sample-homework/money-demand

[Accessed 15/08/2022].

Urgent Homework . ''(Urgent Homework ,2022) https://www.urgenthomework.com/sample-homework/money-demand accessed 15/08/2022.


Buy Money demand Answers Online

Talk to our expert to get the help with Money demand to complete your assessment on time and boost your grades now

The main aim/motive of the management assignment help services is to get connect with a greater number of students, and effectively help, and support them in getting completing their assignments the students also get find this a wonderful opportunity where they could effectively learn more about their topics, as the experts also have the best team members with them in which all the members effectively support each other to get complete their diploma assignments. They complete the assessments of the students in an appropriate manner and deliver them back to the students before the due date of the assignment so that the students could timely submit this, and can score higher marks. The experts of the assignment help services at urgenthomework.com are so much skilled, capable, talented, and experienced in their field of programming homework help writing assignments, so, for this, they can effectively write the best economics assignment help services.

Get Online Support for Money demand Assignment Help Online


Want a fresh copy of this Assignment

Resources

  • 24 x 7 Availability.
  • Trained and Certified Experts.
  • Deadline Guaranteed.
  • Plagiarism Free.
  • Privacy Guaranteed.
  • Free download.
  • Online help for all project.
  • Homework Help Services

Testimonials

Urgenthomework helped me with finance homework problems and taught math portion of my course as well. Initially, I used a tutor that taught me math course I felt that as if I was not getting the help I needed. With the help of Urgenthomework, I got precisely where I was weak: Sheryl. Read More

Tap to Chat
Get Instant Assignment Help
Tap to Chat
Get Instant Assignment Help