Match the following: List-I Economist's approach List -II Name of Economist 1. Transaction demand for…
The Keynesian transactions-demand formulation links money holdings to income, while Tobin explains speculative demand through uncertainty and portfolio choice. Baumol shows…
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Match the following:
| List-I Economist's approach | List -II Name of Economist |
| 1. Transaction demand for money is income elastic | a. W. J. Baumol |
| 2. Speculative demand for money is associated with uncertainty | b. Keynesians |
| 3. Transaction demand for money is interest elastic | c. James Tobin |
| 4. Considered money as any other durable good | d. Friedman |
Answer and explanation
Correct answer A
The Keynesian transactions-demand formulation links money holdings to income, while Tobin explains speculative demand through uncertainty and portfolio choice. Baumol shows the interest sensitivity of transactions balances, and Friedman treats money as a durable asset, giving 1-b, 2-c, 3-a, 4-d.
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Telangana SET (TG SET)