Which theory introduced the idea of interest rate influencing money demand?

CA Foundation · Business Economics · MTP · September 2025
Which theory introduced the idea of interest rate influencing money demand?
(A) A. Fisher's theory
(B) B. Cambridge approach
(C) C. Keynesian theory
(D) D. Inventory theory

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Keynesian theory

Topics: Money Market

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