MCQOPTIONS
Saved Bookmarks
| 1. |
Speculative demand for money is zero when market rate of interest is |
| A. | more than the ‘critical rate’. |
| B. | more than the market rate of interest but less than the critical rate (i.e. capital gains occur). |
| C. | less than the market rate of interest. |
| D. | lowest (i.e. in liquidity trap). |
| Answer» B. more than the market rate of interest but less than the critical rate (i.e. capital gains occur). | |