According to Keynesian monetary theory, there will be multiple choices when the money supply increas

a.Interest rates are lowered.

c.Investment and aggregate demand increased.

Keynes. The study of the demand for money starts from the study of the demand motivation of economic agents. Keynes believed that there are three motivations for people's demand for money:

Motivation for transactions: In order to pay for everyday transactions, people must hold currency; Precautionary motives: also known as prudential motives, which hold currency to cover some unexpected emergency payments; Speculative motives:

Due to the future interest rate.

People hold money in order to avoid capital losses or increase capital gains, and to adjust the asset structure in a timely manner. Among the three motives of money demand, the money demand generated by the transaction motive and the prudential motive are all related to the transaction of goods and services, so they are called transactional money demand (L1). The demand for money generated by speculative motives is mainly used in financial markets.

Speculation, hence the name speculative money demand (L2). And the aggregate demand for money (L) is equal to the sum of the trading demand for money (L1) and the speculative demand (L2). For transactional demand, according to Keys, it is related to the goods and services to be traded, and if this amount is expressed in terms of national income (y), then the transactional demand for money is a function of national income and is expressed as l1 l1 (y).

Moreover, the more income, the more transactional demand, therefore, the function is an increasing function of income.

For speculative demand, Keynes believed that it was mainly related to the currency market.

and the lower the interest rate, the more speculative money is in demand, so the speculative money demand is a decreasing function of interest rates, expressed as l2 l2(i). However, when interest rates fall to a fixed low, the demand for money becomes infinite, i.e., it enters what Keynes called the "liquidity trap, so that the money demand function can be written:

l＝l1（y）＋l2（i）＝l（y，i）

That is, the aggregate demand for money is determined by two factors: income and interest rates.

a.Interest rates are lowered.

c.Investment and aggregate demand increased.

1.Yes, an increase in the money supply will lead to lower interest rates, an increase in investment and aggregate demand, and as money increases, there will be plenty of money to borrow and you can borrow without such high interest. Just as if the commodity increases, the commodity decreases.

With more loans, we can invest more. Aggregate demand will inevitably increase in cycles, more money, more liquidity, more investment, more output, more money in people's hands, which will lead to more demand.

Extended Materials. 1.Keynesian Theory of Money Demand :

Keynesian theory of money demand is one of the most significant developments in monetary economic theory. It was an important part of the famous Keynesian revolution and occupies a very important place in the history of economic development. However, the Keynesian theory of money demand is not limited to perfection.

With the further development of modern economic theory and the increasing emphasis on micro foundations, Keynesian theory of money demand has also had some shortcomings. Therefore, we should re-understand the development and limitations of Keynes's theory of monetary demand from the perspective of the diversified development of modern economics, which is of great significance for promoting the research of monetary demand theory and correctly understanding the role of monetary policy.

2.Microbasis of Keynesian Theory of Monetary Demand: The pre-Keynesian theory of money can be attributed to the tradition of monetary quantity theory.

The theory can be traced back to Hume's theory of money. After more than 100 years of development, it has basically been improved by economists such as Marshall, Wixel, and others. Because of its formal simplicity and ability to explain logically, monetary quantity theory was in the mainstream of economics before Keynes's monetary theory.

After Keynesian monetary theory, because the simple form of monetary quantity theory is obviously insufficient in the ability to explain the real economy, while Keynesian theory has obvious advantages in the ability to explain reality, this theory has regressed to the non-mainstream. Keynesian monetary theory remains the mainstream of MMT. Next, we discuss the micro basis of the theory of money demand from the perspective of demand for money trading and speculative demand.

Answer] :d Keynes believed that people's money demand behavior is often determined by three motives: transaction motive, prevention motive and speculative motive, and the money demand based on transaction motive and prevention motive depends on income level. The demand for money based on speculative motives depends on the level of interest rates. Keynes believed that when interest rates are extremely high, the amount of money demanded by speculative motives is equal to zero; And when interest rates are extremely low, the demand for money caused by speculative motives will be unlimited.

According to Siyankai's theory of Silvers, people's monetary needs include ().

a.Precautionary money demand.

b.Speculative money demand.

c.Trading currencies are in demand for Bi Tong.

d.Demand for payment money.

Correct answer: ABC

Answer: B

Keynes's money demand function is l=l1(y)+l2(r), and the money demand of transaction motivation and prevention motivation depends on the level of income y, which is a function of income y, and is positively correlated with income y, that is, the higher the level of income y, the greater the demand for money; The reverse is smaller. The demand for speculative money is related to the interest rate, which is a function of the interest rate r, but it is negatively correlated with the interest rate r, that is, the higher the interest rate level, the less the demand for macro in speculative money; And vice versa.

Answer]: B, C

According to Keynes's view, speculative money demand is related to interest rates, while transactional and precautionary money trust and failure demand is determined by the withdrawal and depletion, option D and option E are not mentioned in Keynes's theory of money demand, so the answer is option B and option C.