Tobin's model of the speculative demand for money shows that people hold money as a store of wealth as a way of
A) reducing risk.
B) reducing income.
C) avoiding taxes.
D) reducing transactions cost.
A
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Constraints
What will be an ideal response?
The supply curve for a monopolist:
a. is upward sloping b. is vertical c. is equal to the MC curve above AVC d. is equal to the MR curve above the AVC e. none of the above
A competitive firm rents capital until the marginal product of capital equals the:
A. real wage. B. real rental price of capital. C. price of output. D. capital/labour ratio.
If an industry's long-run average total cost curve has an extended range of constant returns to scale, this implies that:
A. both relatively small and relatively large firms can be viable in the industry. B. the industry will be a natural monopoly. C. the industry will be comprised of a very large number of small firms. D. technology precludes both economies and diseconomies of scale.