If you believe that the price of U.S.government bonds will soon fall, you will want to increase your speculative money demand.

Question

Quizplus · Accepted Answer

When you believe that the price of U.S. government bonds will fall, you expect a higher rate of return from other investments. To increase your speculative money demand, you will want to hold more money to invest in those opportunities when they arise. Therefore, the answer is A - true.

If You Believe That the Price of U