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    Principles of Macroeconomics Study Set 2
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    Exam 21: The Influence of Monetary and Fiscal Policy on Aggregate Demand
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    According to Liquidity Preference Theory, the Money-Supply Curve Would Shift
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According to Liquidity Preference Theory, the Money-Supply Curve Would Shift

Question 245

Question 245

Multiple Choice

According to liquidity preference theory, the money-supply curve would shift if the Fed


A) engaged in open-market transactions.
B) changed the discount rate.
C) changed the reserve requirement.
D) did any of the above.

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