The speculative demand for money states that in the short run, people hold on to money because the return to holding bonds and stocks can be negative.

Question

Quizplus · Accepted Answer

The speculative demand for money is based on the idea that people may hold onto money in anticipation of a better investment opportunity in the future. This is often the case when the returns on other investments, such as bonds and stocks, are expected to be negative in the short run. Therefore, the statement is true.

The Speculative Demand for Money States That in the Short