Pateiro-Rodríguez, Carlos; Martín-Bermúdez, Federico; … - 2026
This paper examines, through a modified aggregate demand curve, the reduction in equilibrium income caused by the … presence of precautionary demand in the money demand function. Specifically, this paper rigorously analyses the transformation …. Ceteris paribus, an increase (decrease) in precautionary money demand reduces (increases) equilibrium income, as can be seen …