Both the portfolio choice and Keynes 's theories of the demand for money suggest that as the relative expected return on money falls, demand for it will fall Why does the portfolio choice approach predict that money demand is affected by changes in interest rates Why did Keynes think that money dem...

In Keyness view a rise in interest rates leads to a lower relative expected return ...

Both the portfolio choice and Keynes's theories of the demand for money suggest that as the relative

Question:

Both the choice and Keynes's theories of the demand for money suggest that as the relative on money falls, demand for it will fall. Why does the choice approach predict that money demand is affected by changes in interest rates? Why did Keynes think that money demand is affected by changes in interest rates?
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...