A difference between Keynesian and Friedman money demand relationships is:
1
Keynesian money demand is influenced by changes in interest rates, while Friedman’s money demand is more reliant on permanent income.
2
Keynesian money demand is primarily influenced by inflation expectations, whereas Friedman’s money demand is determined by liquidity preference.
3
Friedman’s money demand depends on interest rate fluctuations, while Keynesian money demand is unaffected by interest rate changes.
4
Friedman’s money demand depends on wealth and permanent income, while Keynesian money demand is primarily driven by short-term income.