Multiple Choice
According to liquidity-preference theory, other things being equal, what does a higher price level lead households to do in the short run?
A) increase residential investment
B) decrease the amount of cash they want to hold
C) buy bonds
D) decrease consumption
Correct Answer:
Verified
Correct Answer:
Verified
Q20: The most important lag for monetary policy
Q27: Which of the following factors mostly determines
Q52: If the interest rate is above a
Q54: Over what period of time is the
Q55: What is the main reason the aggregate-demand
Q56: At what interest rate do some economists
Q58: According to liquidity-preference theory, if the price
Q59: According to the liquidity-preference theory, equilibrium in
Q60: According to the liquidity-preference theory, how does
Q61: If the Bank of Canada conducts open-market