Tobin's generalized portfolio approach to the demand for money is based on the assumption that

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Tobin's generalized portfolio approach to the demand for money assumes that the levels of risk and return vary among assets. This means that individuals will not only hold money for transactions, but also other interest-bearing assets such as bonds and stocks. The demand for money is therefore determined by its opportunity cost, the interest rates on other assets, and their risk levels. This approach takes into account the diversification and risk management strategies of investors in their asset choices.

Tobin's Generalized Portfolio Approach to the Demand for Money Is