Of the three motives for the demand for money recognized by John Maynard Keynes,which one is very sensitive to changes in interest rate?

Question

Quizplus · Accepted Answer

The speculative motive for the demand for money is very sensitive to changes in interest rates. This is because the speculative demand for money is related to the desire to hold cash for investing or speculating purposes, and when interest rates rise, the opportunity cost of holding cash increases, making other investments more attractive. Therefore, people may choose to hold less cash and invest in other assets, resulting in a decrease in the speculative demand for money.

Of the Three Motives for the Demand for Money Recognized