Correct mathematical reasoning requires each word (or symbol) to have only one meaning. Because mathematical symbols do not carry with them associated definitions, the error of equivocation is easy to make. “Money” is used with multiple meanings in the standard textbook IS/LM apparatus, and in discussions of the Keynesian paradox of saving, and liquidity trap. Typically, no definition of money is consistent with both a fixed quantity of money and the holding of money for the speculative motive. Such errors can, and should be avoided by explicitly defining terms and stating which units are being used.
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