In one of the earliest studies on the link between interest rates and money demand using United States data,James Tobin concluded that the demand for money is
A)sensitive to interest rates.
B)not sensitive to interest rates.
C)not sensitive to changes in income.
D)not sensitive to changes in bond values.

Question

Quizplus · Accepted Answer

Tobin concluded that the demand for money is sensitive to interest rates based on his study on the link between interest rates and money demand in the United States.

In One of the Earliest Studies on the Link Between