Difference between transactional motive and speculative motive.

1.	Difference between transactional motive and speculative motive.
Answer» An increase in the money supply, according to Keynes's theory, leads to a drop in the interest rate and an increase in the amount of investment that can be undertaken profitably, bringing with it an increase in total income. Difference between transactional motive and speculative motive: The transactional motive refers to individuals holding money for the sake of buying goods and services to improve their quality of life. The speculative motive refers to the desire to hold money for the purpose of investing and growing wealth over time.

Answer»

An increase in the money supply, according to Keynes's theory, leads to a drop in the interest rate and an increase in the amount of investment that can be undertaken profitably, bringing with it an increase in total income.

Difference between transactional motive and speculative motive:

The transactional motive refers to individuals holding money for the sake of buying goods and services to improve their quality of life.
The speculative motive refers to the desire to hold money for the purpose of investing and growing wealth over time.

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Difference between transactional motive and speculative motive.

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