Tobin's Model of the Speculative Demand for Money Improves on Keynes's

question 89

Multiple Choice

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.

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