1.   This speculative demand can be quite high when the price of securities is considered certain to fall.

2.   The speculative demand becomes virtually infinite at this minimum rate of interest.

3.   Thus it is the demand for time deposits, and hence broad money, that varies with speculative demand and hence interest rates.

4.   Conversely, if the rate of interest is low and is thought likely to rise, the speculative demand is likely to be very high.

5.   We have talked about expectations and their importance in determining the speculative demand for money.

6.   The speculative demand for money depends primarily on anticipations about future movements in security prices and future movements in exchange rates.

7.   According to Keynesians, the speculative demand for money is highly responsive to changes in interest rates.