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January 30th, 2015, 12:58 AM  #1 
Senior Member Joined: Dec 2012 From: Hong Kong Posts: 853 Thanks: 311 Math Focus: Stochastic processes, statistical inference, data mining, computational linguistics  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. 
January 30th, 2015, 04:25 AM  #2 
Senior Member Joined: Dec 2012 From: Hong Kong Posts: 853 Thanks: 311 Math Focus: Stochastic processes, statistical inference, data mining, computational linguistics 
Also, why does a decrease in liquidity preference lead to an increase in the velocity of circulation of money?


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