The speculative demand for money is inversely related to ...
The speculative demand for money is inversely related to the
Interest rate
Level of income
Exchange rate
Inflation rate
Correct answer is A
The speculative demand for money is simply a need for money for investment purposes, which is indirectly influenced by interest rates. When the rates of interest is high, people would most likely want to invest their money so as to get a high return on investment.
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