In Keynes's model, a(n) _____ in interest rates can decrease the _____ demand for money.
A) increase, transactions
B) decrease, transactions
C) increase, speculative
D) decrease, speculative

Question

Quizplus · Accepted Answer

In Keynes's model, an increase in interest rates can decrease the speculative demand for money because higher interest rates make holding money less attractive compared to other investments that yield interest.

In Keynes's Model, A(n) _____ in Interest Rates Can Decrease