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Answer to Question #143429 in Economics for Neba

Question #143429
Write the main point of criticism of classical theory and the shortcoming of classical economics.
1
Expert's answer
2020-11-16T07:28:54-0500

The classical economists believed that money was demanded only for transactions and precautionary purposes. They did not recognise the speculative demand for money because they thought it irrational as money held for speculative purposes related to idle balances.


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