If investors believe that stock prices will rise in the next few days, they are most likely to

Question

Quizplus · Accepted Answer

EIf investors believe that stock prices will rise, they are more likely to invest their money in stocks rather than hold onto it. This decreases their speculative demand for money (C) because they are using their money to speculate on the stock market rather than holding it in cash. Additionally, they are likely to increase their speculative demand for money (E) as they need more money to buy stocks in anticipation of the price rise.

If Investors Believe That Stock Prices Will Rise in the Next