Asked by Chhor Sotheanea on Jun 19, 2024
Verified
Who believed that people had transactional,precautionary,and speculative motives for holding money?
A) John Maynard Keynes and the classical economists
B) Neither John Maynard Keynes nor the classical economists
C) The classical economists,but not John Maynard Keynes
D) John Maynard Keynes,but not the classical economists
Transactional Motive
relates to the need to hold cash for the purpose of conducting day-to-day transactions.
Precautionary Motive
The desire to hold cash or liquid assets to guard against unexpected events and emergencies, influencing how individuals and firms manage their finances.
Speculative Motive
The speculative motive is the desire to hold cash or other assets with the expectation of making a profit from fluctuations in their price or value.
- Familiarize oneself with the foundational theories of classical and Keynesian economic thought.
Verified Answer
PS
Pranao SinhaJun 26, 2024
Final Answer :
D
Explanation :
John Maynard Keynes believed that people had transactional, precautionary, and speculative motives for holding money, while the classical economists did not recognize these motives.
Learning Objectives
- Familiarize oneself with the foundational theories of classical and Keynesian economic thought.