The transaction demand for money depends not only on income but also on rate of interest. This is…
William Baumol (1952) and James Tobin (1956) independently developed the inventory-theoretic approach showing that the transactions demand for money depends not only…
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The transaction demand for money depends not only on income but also on rate of interest. This is according to –
Answer and explanation
Correct answer A
William Baumol (1952) and James Tobin (1956) independently developed the inventory-theoretic approach showing that the transactions demand for money depends not only positively on income, but also inversely on the rate of interest.
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RPSC Assistant Professor (College Education)