Comparing Tobin's Model of the Speculative Demand for Money with Keynesian

question 5

Multiple Choice

Comparing Tobin's model of the speculative demand for money with Keynesian speculative demand

• A)both models imply that individuals hold only money or only bonds.
• B)the Keynesian model implies individuals diversify their asset holdings,while the Tobin model predicts that individuals hold only money or only bonds.
• C)the Tobin model implies individuals diversify their asset holdings,while the Keynesian model predicts that individuals hold only money or only bonds.
• D)both models imply that individuals diversify their asset holdings.

---

Definitions:

Individuation

The process by which an individual becomes distinct and separate, psychologically or socially, often in terms of identity development.

Psyche

The human soul, mind, or spirit, often used to denote the psychological components of a person, including thoughts, feelings, and consciousness.

Capacities

Refers to the potential or ability to perform, yield, or withstand something; often used to describe an individual's mental or physical aptitude.

Mid-Life

A period in an individual's lifespan, typically considered to be between the ages of 40 and 60, often associated with a midlife crisis.