Current location - Trademark Inquiry Complete Network - Futures platform - The microscopic model for studying money demand is as follows
The microscopic model for studying money demand is as follows
There are the following models:

1, square root rule: This model holds that there is a square root relationship between people's demand for transactional currency and their income.

2. Cube Root Rule: This model holds that there is a cube root relationship between people's demand for preventive money and their income.

3. Transaction cost theory: This theory holds that people's money demand depends on transaction costs, including the costs of finding counterparties, negotiating and executing transactions.