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The demand for money, according to Keynes, is for
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- speculative motive
- transaction motive
- precautionary motive
- All the above motives
- speculative motive
Correct Option: C
According to Keynes, money is demanded because of three motives -transaction, precau-tionary and speculative. The first two motives provide yield of convenience and certainty. The third motive provides money yield. Keynes has termed demand for money as liquidity preference.
