The speculative demand for money shows the relationship between money demand and:

Question

Quizplus · Accepted Answer

The speculative demand for money is affected by interest rates. When interest rates are high, people are more likely to invest and hold less money for speculative purposes. When interest rates are low, people are more likely to hold onto money for speculative purposes, leading to a higher speculative demand for money. Income levels, price levels, investment rates, and consumption patterns do not directly impact the speculative demand for money.

The Speculative Demand for Money Shows the Relationship Between Money