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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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    In Liquidity Preference Theory, an Increase in the Interest Rate
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In Liquidity Preference Theory, an Increase in the Interest Rate

Question 125

Question 125

True/False

In liquidity preference theory, an increase in the interest rate, other things the same, decreases the quantity of money demanded, but does not shift the money demand curve.

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