Suppose a financial analyst suggests that investors should now hold cash instead of stocks or bonds. The analyst is probably encouraging an increase in money holdings for which reason? portfolio demand present value demand speculative demand transaction demand precautionary demand

Suppose a financial analyst suggests that investors should now hold cash instead of stocks or bonds. The analyst is probably encouraging an increase in money holdings for which reason? portfolio demand present value demand speculative demand transaction demand precautionary demand

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter14: The Financial Crisis And The Great Recessio

Section: Chapter Questions

Problem 3DQ

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Question

46. Suppose a financial analyst suggests that investors should now hold cash instead of stocks or bonds. The analyst is probably encouraging an increase in money holdings for which reason?

		portfolio demand
		present value demand
		speculative demand
		transaction demand
		precautionary demand

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