A major point of the baumol-tobin model of the transactions


A major point of the Baumol-Tobin model of the transactions demand for money is that they show that the

demand for money is related to income.

velocity of money is constant.

fraction of income that people wish to hold in the form of money is constant.

interest sensitivity of the demand for money is based on a transactions motive shared by most people.

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Microeconomics: A major point of the baumol-tobin model of the transactions
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