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James Tobin Model for Money Demand

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Formulate James Tobin's model of risk and portfolio choice, and with the use of a diagram, show how his model explains the inverse relationship between the demand for money and the rate of interest.

© BrainMass Inc. brainmass.com September 20, 2018, 8:07 pm ad1c9bdddf - https://brainmass.com/economics/finance/james-tobin-model-for-money-demand-588464

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Word attachment shows how this model explains the inverse relationship between money demand and interest rate.

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