Question

The statement that “currency held in the hand yields no income” is given by

• A. A. C. Pigou
• B. A. Marshall
• C. I. Fisher
• D. J. M. Keynes

Hint:

Irving Fisher emphasized that holding money without circulating it in the economy does not generate income, highlighting the importance of spending for economic activity.

Answer 1

The Correct Option is C

The statement "currency held in the hand yields no income" is associated with the quantity theory of money, which was developed by Irving Fisher. Fisher emphasized the role of money in the economy and argued that holding money without spending it does not generate income or economic activity, as it is not contributing to the circulation of goods and services. Irving Fisher made significant contributions to the quantity theory of money, where he introduced the equation of exchange, MV = PT, which reflects the relationship between money supply, velocity of money, and the level of transactions in the economy. The statement reflects the view that idle money does not contribute to economic output. 

- (A) A. C. Pigou: Pigou is known for his work on welfare economics but did not make this statement.
- (B) A. Marshall: Marshall is known for his work on microeconomics, particularly the supply and demand model, but did not make this statement.
- (C) I. Fisher: Correct. Fisher is the economist who made this statement, as part of his quantity theory of money.
- (D) J. M. Keynes: Keynes is known for his work on macroeconomics, particularly during the Great Depression, but did not make this statement.
The correct answer is (C), as the statement is attributed to Irving Fisher, who discussed the idea that holding currency without spending it does not generate income. 

Final Answer: (C) I. Fisher.