Tobin's Model of the Speculative Demand for Money Shows That

question 51

Multiple Choice

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.

---

Definitions:

Involuntary Part-time Worker

An individual who is employed less than full-time hours but prefers a full-time position, often due to economic conditions or employer decisions beyond their control.

Grocery Store

A retail establishment that primarily sells food, both fresh and packaged, along with various household goods.

Toronto Law Firm

A legal practice based in Toronto, Canada, offering various legal services and representation to its clients.

Economy Sector

An economy sector is a segment of the economy, categorized by the type of activity involved, such as agriculture, manufacturing, or services.