Transactions theories of money demand

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Transactions theories of money demand are the theories that explain how much money people choose to hold and that stress the role of money as a medium of exchange. (Cf. portfolio theories of money demand.)

Definition

According to Macroeconomics by Mankiw (7th edition),

Transactions theories of money demand. Theories that explain how much money people choose to hold and that stress the role of money as a medium of exchange. (Cf. portfolio theories of money demand.)
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