The speculative demand for money suggests that:

Economics For Today
10th Edition
ISBN:9781337613040
Author:Tucker
Publisher:Tucker
Chapter26: Monetary Policy
Section: Chapter Questions
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  1. The speculative demand for money suggests that:

(a)    Individuals hold onto money for the purpose of engaging in transactions

(b)   As the rate of interest rate increases, the demand for money will rise

(c)    When the economy becomes more uncertain, people are more likely to hold unto money

(d)   The velocity of money is constant

(e)    As the rate of interest falls, the demand for money will rise.

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