Which variable is explicitly absent from the Cambridge money demand function but central to Keynes' speculative demand?

CA Foundation · Business Economics · MTP · January 2026
Which variable is explicitly absent from the Cambridge money demand function but central to Keynes' speculative demand?
(A) A. Income
(B) B. Price level
(C) C. Interest rate
(D) D. Velocity of money

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Interest rate

Topics: Money Market

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