Tobin, in his theory of liquidity preference function, framed the relationship between which of the following?

CA Foundation · Business Economics · PYQS · January 2026
Tobin, in his theory of liquidity preference function, framed the relationship between which of the following?
(A) A. Demand for money and supply of money
(B) B. Rate of inflation and demand for money
(C) C. Rate of interest and demand for money
(D) D. Rate of interest and disposable income

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Rate of interest and demand for money

Topics: Money Market

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