Speculative demand becomes perfectly elastic when:

CA Foundation · Business Economics · MTP · January 2026
Speculative demand becomes perfectly elastic when:
(A) A. Inflation is zero
(B) B. Interest rate is zero
(C) C. Bond prices fall
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Interest rate is zero

Topics: Money Market

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