Which of the following proposition of demand for money in Keynesian theory has a distinct break with…
Speculative demand treats money as an asset competing with bonds and sensitive to interest-rate expectations, the distinctive Keynesian break from the transactions-focused…
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Which of the following proposition of demand for money in Keynesian theory has a distinct break with classical theory of demand for money?
Answer and explanation
Correct answer C
Speculative demand treats money as an asset competing with bonds and sensitive to interest-rate expectations, the distinctive Keynesian break from the transactions-focused classical account. Fiat is a monetary form, not a demand motive.
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UGC NET Economics