In Keynes's theory of money demand, interest rates have opposite effects on precautionary and speculative demand for money.

Name: In Keynes's theory of money demand, interest rates have opposite effects on precautionary and speculative demand for money.
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In Keynes's theory, both precautionary and speculative demands for money are inversely related to the interest rate. Higher interest rates decrease both types of money demand as people prefer to hold less cash and more interest-bearing assets.

In Keynes's Theory of Money Demand, Interest Rates Have Opposite