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.

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Definitions:

Reasoning

The process of thinking about something in a logical and sensible way to form a conclusion or judgment.

Tennis

A racquet sport in which two or four players hit a lightweight ball back and forth across a net on a rectangular court.

Deductive Step

A part of reasoning where the conclusion is necessarily derived from the premises.

Modus Ponens

A logical argument form that, given premises "If P, then Q" and "P," concludes "Q," exemplifying a valid deductive reasoning pattern.