Keynes called the money that people hold to make routine day-to-day purchases the:
A) transactions demand for holding money.
B) precautionary demand for spending money.
C) speculative demand for holding money.
D) store of value demand for holding money.

Question

Quizplus · Accepted Answer

Keynes called the money that people hold to make routine day-to-day purchases the "transactions demand for holding money". This refers to the demand for money to facilitate regular transactions such as buying groceries or paying bills. The other options (B, C, and D) refer to other types of demand for holding money.

Keynes Called the Money That People Hold to Make Routine