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

Question

Quizplus · Accepted Answer

Tobin's model of the speculative demand for money suggests that people hold money as a store of wealth as a way of reducing risk, particularly the risk associated with fluctuations in the value of other assets.

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