The Baumol-Tobin Analysis Suggests That

question 49

Multiple Choice

The Baumol-Tobin analysis suggests that

• A)velocity is relatively constant.
• B)the transactions component of the demand for money is negatively related to the level of interest rates.
• C)the speculative motive is nonexistent.
• D)velocity is unrelated to the transactions motive.

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Limited Liability

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