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.
A)increase; increase
B)increase;
C)decrease decrease; increase
D)decrease; decrease

Question

Quizplus · Accepted Answer

According to portfolio theories of money demand, when the expected return on stocks or bonds increases, people are more likely to invest in these assets rather than hold money, leading to a decrease in the demand for money.

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