Of the three motives for holding money suggested by keynes, which did he believe to be the most sensitive to interest rates?

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Coleman Hess

Business

11 September, 17:14

Of the three motives for holding money suggested by keynes, which did he believe to be the most sensitive to interest rates?

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Turner Olson · Answer 1

Of the three motives for holding money suggested by Keynes, the speculative motive is the most sensitive to interest rates base on what he believes.

A speculative motive is a desire to hold cash, to make the best use of any investment opportunity. It is a strategy used by investors to hold cash, investors keep a fair amount with them so as to earn higher profits.