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    Principles of Economics
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    Exam 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand
  5. Question
    The Theory of Liquidity Preference Assumes That the Nominal Supply
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The Theory of Liquidity Preference Assumes That the Nominal Supply

Question 44

Question 44

Multiple Choice

The theory of liquidity preference assumes that the nominal supply of money is determined by the


A) level of real GDP.
B) rate of inflation.
C) interest rate.
D) the Federal Reserve.

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