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.

---

Definitions:

Direct Product Cost

Costs that can be directly attributed to the production of specific goods or services, including materials and labor.

Advertising Campaign

An advertising campaign is a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC).

Chocolate Covered Almonds

A confectionery product consisting of almonds coated in chocolate, often served as a sweet snack.

Manufacturing Costs

Expenses directly associated with the production of goods, including materials, labor, and factory overhead.