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According to some economists, Tobin's portfolio selection model suers from the following deciencies: (a) it explains the allocation of wealth between assets, but it does

According to some economists, Tobin's portfolio selection model suers from the

following deciencies: (a) it explains the allocation of wealth between assets, but it

does not explain the demand for money; (b) it implies that investors view

investment in long-term assets as more risky than investment in short-term assets:

this, however, is false. Discuss these shortcomings.

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