The ________ motive shifts the money demand curve,and the ________ motive causes movements along the same money demand curve.

Question

Quizplus · Accepted Answer

The transaction motive for holding money refers to the demand to hold cash for daily transactions. An increase in transactions necessitates an increase in money demand, thus shifting the money demand curve to the right. 
The speculative motive refers to the demand to hold money for the purpose of investing in financial instruments such as stocks or bonds. It causes movements along the same money demand curve, as changes in interest rates affect the opportunity cost of holding money for investment purposes. Precautionary motive refers to the demand to hold money for unexpected future expenses and is a type of transaction motive.

The ________ Motive Shifts the Money Demand Curve,and the ________

The Motive Shifts the Money Demand Curve,and the