1. Keynes and his effect on Europe
... Theory Keynes said that people invest not because of the interest rate they receive, but because of the prospective capital gain of the investment, example, people buy shares, not so much for the annual dividend but for the prospective increase in the marked value of the share. He ... This motive depends on your level of income and also the rate of interest. This is when people hold money in case of emergencies, for example illness, breakage of appliance, car repairs etc. (3) Speculative Motive! The demand to hold money with a view to investing at some future date. ... The formulas for t...
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- Grade Level: High School