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Speculative Demand for Money Arises from the Desire by Individuals

Question 60

Multiple Choice

Speculative demand for money arises from the desire by individuals and firms to hold cash balances


A) for speculative equity purchases.
B) in anticipation of changes in interest rates and bond prices.
C) to meet unforeseen business expenses.
D) in anticipation of investing in capital purchases for the firm.
E) to maintain adequate cash flow in case of inflation.

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