The Baumol-Tobin model states that this function is equal to the square root of half the income times the cost of withdrawals, all over the interest rate. This function is equ
The Baumol-Tobin model states that this function is equal to the square root of half the income times the cost of withdrawals, all over the interest rate. This function is equal to the negative ratio of the price and wealth partials of indirect utility in Roy's identity. The unique solutions to the expenditure minimization and utility maximization problems are the primary functions of this type; the (*) Slutsky equation relates changes in those functions, which are named for Hicks and Marshall. Changes in this function can also be decomposed into substitution and income effects, and for normal goods, its curve slopes downwards, indicating that it decreases as price increases. For 10 points, name this function contrasted with supply, the amount desired of a given good.
The Baumol-Tobin model states that this function is equal to the square root of half the income times the cost of withdrawals, all over the interest rate.
{demand} [or {demand} for money; or {Marshallian demand}; or {Hicksian demand} at any point]