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Within Keynesian models the demand to hold money is called 'liquidity preference' (i.e., a preference to hold 'money' as the most liquid of wealth assets).

Within Keynesian models the demand to hold money is called 'liquidity preference' (i.e., a preference to hold 'money' as the most liquid of wealth assets). With reference to the statement, discuss the motives behind Keynes' liquidity preference theory. Relate each of the motives to either income or interest rate and explain how changes in income or interest rate will impact the respective motives.

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