Fred is holding on to cash because he thinks interest rates will increase in the future and
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Fred is holding on to cash because he thinks interest rates will increase in the future and thus bond prices will decrease, making the future a good time to buy bonds. Keynes would say Fred is holding on to cash as part of which type of demand for money?
a. Precautionary
b. Speculative
c. Transactional
d. Velocity
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Related Book For
Money, Banking, Financial Markets and Institutions
ISBN: 978-0538748575
1st edition
Authors: Michael Brandl
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