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January 30th, 2015, 12:58 AM   #1
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Question about money demand curve

This question probably sounds dumb, but why does a decrease in the stock of liquid assets lead to a leftward shift of the Md curve? Thanks.
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January 30th, 2015, 04:25 AM   #2
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Also, why does a decrease in liquidity preference lead to an increase in the velocity of circulation of money?
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