1. Keynes and his effect on Europe
... the rate of interest. It directly relates to your level of income. (2) Precaution Motive! 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. This motive depends totally on the rate of interest. If rates are high, people will invest immediately and not hold the money therefore, at high rates of interest the speculative demand for money will be ... fut...
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- Grade Level: High School