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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
  5. Question
    According to the Theory of Liquidity Preference, a Fall in the _____
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According to the Theory of Liquidity Preference, a Fall in the _____

Question 85

Question 85

Short Answer

According to the Theory of Liquidity Preference, a fall in the _____ reduces the amount of money that people wish to hold. As a result, falling interest rates stimulates investment spending and aggregate _____.

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