Tobin's generalized portfolio approach to the demand for money is based on the assumption that
A) money is needed for transactions.
B) all interest-bearing assets are risky.
C) the levels of risk and return vary among assets.
D) variations in wealth have little effect on asset demands.
C
You might also like to view...
Relative to a perfectly competitive market with the same cost and demand, a single-price monopolist produces ________ output and has a ________ price
A) more; higher B) less; lower C) more; lower D) less; higher
In 2008, inflation exceeded expected inflation. In 2009, expected inflation exceeded inflation
Therefore the real interest rate was ________ than the expected real interest rate in 2008 and the real interest rate was ________ than the expected real interest rate in 2009. A) less; less B) less; greater C) greater; less D) greater; greater
The abbreviation GATT stands for:
a. General Analysis of Taxes and Transfers. b. General Agreement on Tariffs and Trade. c. Government Agency for Trade and Transportation. d. Government Agency for Treaties and Taxes. e. General Agreement on Terms of Trade.
Assume Leo buys coffee beans in a competitive market. It follows that
a. Leo has a limited number of sellers from which to buy coffee beans. b. Leo will negotiate with sellers whenever he buys coffee beans. c. Leo cannot influence the price of coffee beans even if he buys a large quantity of them. d. None of the above is correct.