Because Keynes assumed that the expected return on money was zero,he argued that people would
A)never hold money.
B)never hold money as a store of wealth.
C)hold money as a store of wealth when the expected return on bonds was negative.
D)hold money as a store of wealth only when forced to by government policy.

Question

Quizplus · Accepted Answer

Keynes argued that people would hold money as a store of wealth when the expected return on bonds was negative, as money provided a safer alternative in such situations despite its zero expected return.

Because Keynes Assumed That the Expected Return on Money Was