Multiple Choice
The theory of liquidity preference assumes that the nominal supply of money is determined by which of the following?
A) the level of real GDP
B) the rate of inflation
C) the Ministry of Finance
D) the central bank
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q1: According to the theory of liquidity preference,
Q2: According to liquidity-preference theory, if the quantity
Q3: According to liquidity preference theory, when do
Q6: Which theory is the most appropriate to
Q7: How does the interest rate change when
Q8: How do open-market purchases affect the price
Q9: Which of the following is NOT a
Q10: Which of the following is the most
Q11: When the Bank of Canada increases the
Q171: Explain why the interest rate is the