The total demand for money is the sum of the transactions demand plus the ____________ demand for money.

Question

03-01-2020
Business

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The total demand for money is the sum of the transactions demand plus the ____________ demand for money.

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ijaz4308 ijaz4308 · Answer 1 · 2020-01-04T10:14:23+01:00

Answer:

precautionary and speculative

Explanation:

Aggregating the transactional, precautionary and speculative demand for money, we get the total demand for money. This is sometimes known as the liquidity preference curve, and is inversely related to the rate of interest.

Total demand for money=Transactions demand+precautionary and speculative demand for the money

Therefore, the answer to the question is precautionary and speculative