Macroeconomics and buying mutual funds.?


macroeconomic point of view buying bonds or financial asset related demand , supply of money.

according keynes
m=l(y)+l`(r,p)

l=money wanted public buy things
l`=money wanted people buy financial assets
dl/dy>0 , dl`/dr , dl`/dp<0
y=production
r=rate of interest
p=prices

savings , investment occur in market of goods.
buying funds take place in market of money.

according macroeconomics, not finance, buying mutual funds saving, or investment?


Social Science Economics Next



Comments

Popular posts from this blog

What is actually SEO?Is it only meta tags?Elaborate.?

Should India fight Terrorism or fight simply Pakistan ?