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1. What were the similarities and differences between Keynes's and Friedman's demand functions for money? In which tradition (Keynesian, quantity theory or traditional classical) did Friedman's analysis belong?Discuss Friedman's views on velocity and present his velocity function.
2. Discuss the following statement: Friedman's critique of Keynesian liquidity preference theory, and especially of the Keynesian speculative motive, is more concerned with the stability rather than with the interest elasticity of money demand.
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