Multiple Choice
According to the theory of liquidity preference, what does a decrease in the price level cause the interest rate and investment to do?
A) It causes both the interest rate and investment to rise.
B) It causes both the interest rate and investment to fall.
C) It causes the interest rate to rise and investment to fall.
D) It causes the interest rate to fall and investment to rise.
Correct Answer:
Verified
Correct Answer:
Verified
Q27: Which of the following factors mostly determines
Q61: If the Bank of Canada conducts open-market
Q63: Which action might we logically expect to
Q64: In the short run, a decrease in
Q65: Which of the following is an effect
Q67: Stock prices often rise when the Bank
Q68: Which of the following shifts money demand
Q69: How does a stock market boom affect
Q70: In recent years, what has been the
Q71: If the interest rate is below a