Daily Archives: September 9, 2024

What is a money demand curve?

The demand curve for money shows the quantity of money demanded at each interest rate. Its downward slope expresses the negative relationship between the amount of money demanded and the interest rate. Its downward slope expresses the negative relationship between the quantity of money demanded and the interest rate. The relationship between interest rates and…

Explained WPI and CPI: Measures of Inflation

The two main indicators of inflation in India are the wholesale price index (WPI) and the consumer price index (CPI). The WPI measures prices received by producers of goods, while the CPI measures prices facing consumers at the retail level. The WPI is calculated using the Laspeyres formula, which measures the change in the cost…