Keynes hypothesized that the speculative component of money demand was primarily determined by the level of
A)interest rates.
B)velocity.
C)income.
D)stock market prices.

Question

Quizplus · Accepted Answer

Keynes believed that the speculative demand for money was determined by interest rates as people would hold more money when interest rates were low to avoid investing in riskier assets.

Keynes Hypothesized That the Speculative Component of Money Demand Was