passwella.
Menu

WAEC Economics 2003 Question 37

Question 37

Money and Inflation

Precautionary motive relates to

  1. A.demand for money
  2. B.demand for goods
  3. C.supply of money
  4. D.supply of goods
Show the answer and explanation

Answer: A (demand for money)

Explanation

The precautionary motive is one of Keynes' reasons for holding (demanding) money.