Ewing, Bradley T.; Kruse, Jamie B.; Thompson, Mark A. - In: Journal of Economic Education 35 (2004) 3, pp. 243-250
The authors describe a classroom experiment that motivates student understanding of behavior toward risk and its effect … on money demand. In this experiment, students are endowed with an income stream that they can allocate between a risk …. When volatility of the risky fund increases, reallocating to the risk-free fund results in an increase in aggregate money …