There is an inverse relationship between the rate of interest and the speculative Demand for Money. This is due to :
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2 marksMacroeconomicsDemand for money and monetary theoriesKeynesian liquidity preferenceModerateabout 1 min
UGC-NET 2024 Question 6: Demand for money and monetary theories
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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.
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