Multiple Choice
What is the variable that balances the money demand and supply in the liquidity-preference and the classical theories?
A) the interest rate in both theories
B) the price level in both theories
C) the interest rate in the liquidity-preference theory and the price level in the classical theory
D) the price level in the liquidity-preference theory and the interest rate in the classical theory
Correct Answer:
Verified
Correct Answer:
Verified
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Q28: Which of the following shifts aggregate demand
Q29: According to liquidity-preference theory, how does an
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Q31: Figure 15-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7554/.jpg" alt="Figure 15-1
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Q34: Which statement is NOT a reason the
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Q37: When the interest rate decreases, what happens