Tobin's Model of the Speculative Demand for Money Shows That

question 9

Multiple Choice

Tobin's model of the speculative demand for money shows that people hold money as a ________ as a way of reducing ________.

• A)medium of exchange;transaction costs
• B)medium of exchange;risk
• C)store of wealth;transaction costs
• D)store of wealth;risk

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Definitions:

Dichotomous Thinking

Dichotomous thinking is a cognitive process that categorizes experiences, values, and objects into two extreme categories, such as all good or all bad.

Splitting

A defense mechanism often observed in borderline personality disorder, where a person views themselves or others as all good or all bad, with no middle ground.

Borderline Personality Disorder

A mental health disorder characterized by unstable moods, behavior, and relationships, with individuals often experiencing intense episodes of anger, depression, and anxiety.

Psychoticism

Proneness to psychotic-like symptoms, such as illusions.