Speculative demand for cash is determined by________.

the rate of interest

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the level of income

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the general price level

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the market conditions

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Solution

The correct option is B the rate of interest
Speculative demand for money is the expectation of the bond prices or the interest rates going up and increasing profits. So, if the interest rate is expected to go up then the demand would increase.

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Speculative demand for cash is determined by________.

The correct option is B the rate of interestSpeculative demand for money is the expectation of the bond prices or the interest rates going up and increasing profits. So, if the interest rate is expected to go up then the demand would increase.

The correct option is B the rate of interest
Speculative demand for money is the expectation of the bond prices or the interest rates going up and increasing profits. So, if the interest rate is expected to go up then the demand would increase.