Question

Speculative demand for money is given by $M_s^d=$

• A. $\frac{(r_{\text{max}}-r)}{r-r_{\text{min}}}$
• B. $\frac{(r_{\text{max}}+r)}{r-r_{\text{min}}}$
• C. $\frac{(r-r_{\text{min}})}{r_{\text{max}}-r}$
• D. $\frac{(r_{\text{max}}+r)}{r+r_{\text{min}}}$

Answer 1

The correct option is A

$\frac{(r_{\text{max}}-r)}{r-r_{\text{min}}}$

Speculative demand for money is given by $M_s^d=\frac{(r_{\text{max}}-r)}{r-r_{\text{min}}}$