Multiple choice

Match the followings

 
List - I
List - II
1. Stability of demand function for money
(i) Bent Han.en
2. Demand inflation theory
(ii) Milton Friedman
3. Interest elasticity of transactions demand for cash
(iii) Don Patinkin
4 Real balance effect
(iv) James Tobin

  1. 1 - (iv), 2 - (iii), 3 - (i), 4 - (iv)

  2. 1 - (ii), 2 - (i), 3 - (iv), 4 - (iii)

  3. 1 - (iii), 2 - (ii), 3 - (i), 4 - (iv)

  4. 1 - (iii), 2 - (ii), 3 - (iv), 4 - (i)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The correct matching links monetary theories to their proponents: Stability of money demand function is Friedman's monetarist cornerstone, Demand inflation theory is Bent Hansen's contribution (inflation from excess demand), Interest elasticity of transactions demand for cash is James Tobin's insight (transactions demand responds to interest rates), and Real balance effect (Pigou effect) is Don Patinkin's formulation (wealth effect from real money balances). These match foundational thinkers in monetary economics with their key insights.

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