Tobin's model of the speculative demand for money shows that people can reduce their ________ by ________ their asset holdings

A) wealth; diversifying
B) risk; specializing
C) return; diversifying
D) risk; diversifying


D

Economics

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Suppose you earn annually compounding interest of 10% (per year) on an initial investment of $1,000. Rounded to the nearest 100, what will your balance in 10 years be?

A. $11,000 B. $5,200 C. $2,600 D. $2,000 E. $1,600 F. None of the above

Economics

Economic theory suggests that if natural resources can be held as private property, then

A) conservation will be nonexistent. B) owners will have an incentive not to abuse them. C) natural resources will be sold off for immediate use. D) people will simply hold them and refuse to make them available.

Economics

The average productivity of labor reaches its maximum:

a. at the point of inflection of the total product curve. b. where the slope of the total product curve is steepest. c. where the slope of the total product curve is zero. d. where marginal and average productivity are equal.

Economics

A tax multiplier equal to -4.30 would imply that a $100 tax increase would lead to a:

a. 43 percent decrease in real GDP. b. $430 decline in real GDP. c. $430 increase in real GDP. d. 4.3 percent increase in real GDP. e. 4.3 percent decrease in real GDP.

Economics