Identify the motive for holding money in the following scenario.

joneas recently moved from a comission-based sales job which his income flucated somewhat unpredicately from on month to the next to a salary-based management position where he recevies a fixed paycheck each month. his newfound income stability causes him to lower the amount of money he keeps in a sacings account to guard against a sudden drop in income. this is an example of a decrease in jonas's (precautionary/speculative/transact ions) demand for money.

complete the following statement about the relationship between the interest rate and speculative balances.

as the interest rate rises, the opportuninty cost of holding money rises/falls), and people (increase/decrease) their speculative balances.