Multiple Choice
The theory of liquidity preference states that the quantity of real money balances demanded is:
A) negatively related to both the interest rate and income.
B) positively related to both the interest rate and income.
C) positively related to the interest rate and negatively related to income.
D) negatively related to the interest rate and positively related to income.
Correct Answer:
Verified
Correct Answer:
Verified
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