Factors impacting aggregate money demand

Describe the three main factors that determine aggregate money demand. Illustrate, with examples, how changes in these factors alter aggregate money demand.

Solution Summary

The solution explains the concept of aggregate demand very well and the main factors that determine AD - Price Level, Real income and interest rate. The solution is very detailed and illustrative with lot of examples. The response explains the concepts very well and in detail. It is ideal for students looking to get a detailed understanding of the topic. Overall, an excellent response.