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    Principles of Economics Study Set 8
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    Exam 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand
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    According to the Theory of Liquidity Preference, the Interest Rate
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According to the Theory of Liquidity Preference, the Interest Rate

Question 16

Question 16

True/False

According to the theory of liquidity preference, the interest rate adjusts to balance the supply of, and demand for, loanable funds.

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