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The primary criticism Keynes leveled against Fisher’s theory of money demand is the prediction that the...

The primary criticism Keynes leveled against Fisher’s theory of money demand is the prediction that the velocity of money is constant. Keynes stated that the data on velocity showed unambiguously that velocity fluctuated significantly in the short run. Explain how Keynes’ theory of money demand allows for such short run fluctuations.

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Rahul Sunny answered 2 years ago
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