In the Cambridge cash-balance approach, money demand is expressed as:

CA Foundation · Business Economics · MTP · September 2026
In the Cambridge cash-balance approach, money demand is expressed as:
(A) A. M = PT/V
(B) B. Md = kPY
(C) C. MV = PT
(D) D. Md = rY

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Md = kPY

Topics: Money Market

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