It may illustrate the argument to point out that, if the liquidity preferences due to the transactionsmotive and the precautionary motive are assumed to absorb a quantity of cash which is not very sensitive to changes in the rate of interest as such and apart from its reactions on the level of income, so that the total quantity of money, less this quantity, is available for satisfying liquidity preferences due to the speculative motive, the rate of interest and the price of bonds have to be fixed at the level at which the desire on the part of certain individuals to hold cash (because at that level they feel 'bearish' of the future of bonds) is exactly equal to the amount of cash available for the speculative motive.