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Economics (AS & A Level) · Oct / Nov 2021 · Paper 33 · Question 27

9708Money and banking

According to Keynesians, the demand for money is negatively correlated with the interest rate. Which motive for holding money best accounts for this relationship?

  1. Aincome motive
  2. Bprecautionary motive
  3. Cspeculative motive
  4. Dtransactionary motive

As printed in the paper

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Correct answer: C. speculative motive

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