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What three motives for holding money did Keynes consider in his liquidity preference theory of the demand for real money balances? On the basis of these motives, what variables did he think determined the demand for money? Mishkin, Frederic S.. Economics of Money, Banking and Financial Markets, The (What's New in Economics) (p. 477). Pearson Education. Kindle Edition.

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amirmeeka

Answer:

The first answer to your question is

  • Speculative motive.
  • Transactions motive.
  • Precautionary motive.

and for your second question

  • Nominal interest rate.
  • Income.

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