Asked by Mackenzie Vatter on May 09, 2024
Verified
John Maynard Keynes said that people have three motives for holding money.Each of the following is a Keynesian motive except
A) inflation.
B) transactions.
C) speculative.
D) precautionary.
Keynesian Motive
An economic theory proposed by John Maynard Keynes, suggesting that demand for goods and services is the driving force in an economy, particularly during times of economic downturn.
Inflation
The pace at which overall prices for products and services increase, diminishing the value of money as time passes.
- Describe the Keynesian motives for holding money.
Verified Answer
TL
Timilehin LamoriuMay 11, 2024
Final Answer :
A
Explanation :
The three motives for holding money according to Keynes are transactions, speculative, and precautionary. Inflation is not one of the three motives.
Learning Objectives
- Describe the Keynesian motives for holding money.