Ceteris paribus, according to Keynes, the speculative motive for holding money shows that the

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According to Keynes, the speculative motive for holding money means that people hold money not only for transactions but also for speculation, anticipating changes in the interest rate. As the interest rate increases, the opportunity cost of holding money rises, which reduces the quantity demanded of real money balances. Therefore, the quantity demanded of real money balances and the interest rate are inversely related, which is reflected in the downward slope of the liquidity preference curve.

Ceteris Paribus, According to Keynes, the Speculative Motive for Holding