According to portfolio theories of money demand,increases in the expected return on stock ______ the demand for money,and increases in the expected return on bonds ______ the demand for money.

Question

Quizplus · Accepted Answer

In portfolio theories of money demand, an increase in the expected return on stocks or bonds makes these assets more attractive compared to holding money, which typically has a lower return. Therefore, the demand for money decreases as investors shift their portfolios towards stocks or bonds.

According to Portfolio Theories of Money Demand,increases in the Expected