The factors determining the amount of money people want to hold. In Keynesian monetary theory liquidity preference is affected by three main considerations: the volume of transactions which people and firms expect to need to conduct, or the transactions motive; their expectations concerning movements in interest rates, or the speculative motive; and their degree of uncertainty about the future, or the precautionary motive. Liquidity preference, or the desire to hold money, is an increasing function of the expected level of money income, of fears that interest rates are likely to rise so that capital losses will be made on securities, and of fears of recession and unemployment. The L in the LM curve refers to liquidity in this sense.

• consumer choice
• consumer confidence
• consumer credit
• consumer debt
• consumer durables
• consumer expenditure
• consumer goods
• consumerism
• consumer non-durables
• consumer price index
• consumer protection
• consumer rationality
• consumer sovereignty
• consumer surplus
• consumption
• consumption externality
• consumption function
• consumption goods
• consumption possibility line
• contagion
• content, local
• contestable market
• contingent fee
• contingent liability
• contingent market