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  3. Study Set
    Principles of Macroeconomics
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    Exam 15: The Influence of Monetary Policy on Aggregate Demand
  5. Question
    According to the Theory of Liquidity Preference, How Is the Money
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According to the Theory of Liquidity Preference, How Is the Money

Question 12

Question 12

Multiple Choice

According to the theory of liquidity preference, how is the money supply affected by the interest rate?


A) inversely
B) negatively
C) not affected
D) directly

Correct Answer:

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