When interest rates are high, speculative demand for money is ________.

High

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Low

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Independent of interest rates

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Invariable

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Solution

The correct option is B
Low

Speculative demand for money is low when interest rates are high as people convert their money to bonds and stocks.

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Similar questions

Q. When interest rates are high, speculative demand for money is .

Why is speculative demand for money inversely related to the rate of interest?

If the present rate of interest is $10 %$ , the maximum interest rate is $15 %$ and the minimum interest rate is $5 %$ , which of the following is the speculative demand for money?

As interest rate increases from its minimum value to its maximum value, the speculative demand for money goes from:

If the rate of interest is high, the precautionary demand for money will be:

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When interest rates are high, speculative demand for money is ________.

The correct option is B Low Speculative demand for money is low when interest rates are high as people convert their money to bonds and stocks.

The correct option is B
Low

Speculative demand for money is low when interest rates are high as people convert their money to bonds and stocks.