According to Keynes, the transactions demand for money is a direct proportional and positive function of the level of income. Which of the following…
CA Foundation · Business Economics · PYQS · May 2026
According to Keynes, the transactions demand for money is a direct proportional and positive function of the level of income. Which of the following equations correctly represents this relationship?
Suggested Answer and Working Notes:
Correct Answer: Option (B)
B. Lr = k Y
Topics: Money Market