Economist James Tobin Developed a Formal Model That Justifies Holding

question 100

Multiple Choice

Economist James Tobin developed a formal model that justifies holding ________,and it goes some way in explaining variations in the demand for ________.

• A)only safe assets or only risky assets,M1
• B)only safe assets or only risky assets,M2
• C)a mix of safe and risky assets,M1
• D)a mix of safe and risky assets,M2

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Definitions:

Job Mobility

The ability of workers to change jobs, often relating to career advancement opportunities.

Uncertainty Avoidance

A cultural dimension that describes the extent to which people in a society are uncomfortable with ambiguity and uncertainty.

Ambiguity

The quality of being open to more than one interpretation; lack of definiteness or certainty.

Unpredictability

The quality of being unable to be predicted or foreseen, often leading to uncertainty or instability in various contexts.