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Questions › IIT JAM › IIT JAM 2026 › Q35
2 marksMacroeconomics › Demand for money and monetary theories › Keynesian liquidity preferenceModerateabout 2 min

IIT JAM 2026 Question 35: Demand for money and monetary theories

In the context of Keynesian money demand, ceteris paribus, the real demand for money increases when

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Answer and worked solution

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Demand for money and monetary theories has come up 82 times in 7 exams since 2005.

What this question tests

This question is on Keynesian liquidity preference, part of Demand for money and monetary theories in Macroeconomics.

Why people hold money: the transactions, precautionary and speculative motives and the link to interest rates.

TestStop has 25 past-paper questions on this subtopic.

Take this paper as a timed mockMore on Keynesian liquidity preference

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Question from the IIT JAM 2026 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.