Economics · Economy
The Cambridge Cash Balance approach (M = kPY) differs from Fisher's Transaction approach primarily because it:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Excludes income and considers only price levels
- 2Treats velocity of money as a perfectly stable constant
- 3Emphasises money held as a store of value — the role of wealth and expectations✓
- 4Considers only the transactions demand for money
Correct answer
Emphasises money held as a store of value — the role of wealth and expectations
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