Tobin's model of the speculative demand for money improves on Keynes's analysis by showing that
A) the speculative demand for money is interest insensitive.
B) the transactions demand for money is interest insensitive.
C) people will hold a diversified portfolio.
D) people will hold money or bonds but not both.
C
You might also like to view...
An inferior good is one for which
a. the compensated demand curve fails to be downward sloping. b. higher prices have relatively little effect on the quantity demanded. c. the income elasticity is positive but less than 1. d. increases in income result in lower quantities demanded.
In oligopolistic markets: a. there are a large number of sellers
b. firms are large relative to the size of the market. c. there are insignificant barriers to entry. d. firms have no perceptible influence over the market price.
In the circular flow of income model injections:
a) Are assumed to be exogeneous (independent of national income) b) Are assumed to be a function of national income c) Decrease aggregate demand d) Decrease the investment into an economy
Which of the following shows the accurate sequence for establishing a new equilibrium in this graph?
a. S1 moves to S2; P1 moves to P2; Q1 moves to Q2; E1 moves to E2
b. S1 moves to S2; E1 moves to E2; Q1 moves to Q2; P1 moves to P2
c. P1 moves to P2; S1 moves to S2; E1 moves to E2; Q1 moves to Q2
d. E1 moves to E2; P1 moves to P2; Q1 moves to Q2; S1 moves to S2