Multiple Choice
According to liquidity preference theory, an increase in money demand for some reason other than a change in the price level causes
A) the interest rate to fall, so aggregate demand shifts right.
B) the interest rate to fall, so aggregate demand shifts left.
C) the interest rate to rise, so aggregate demand shifts right.
D) the interest rate to rise, so aggregate demand shifts left.
Correct Answer:
Verified
Correct Answer:
Verified
Q20: Suppose that there are no crowding-out effects
Q39: Suppose the MPC is 0.9.There are no
Q61: "Monetary policy can be described either in
Q66: Sometimes, changes in monetary policy and/or fiscal
Q94: Permanent tax cuts shift the AD curve<br>A)farther
Q95: As the interest rate falls,<br>A)the quantity of
Q125: In liquidity preference theory, an increase in
Q197: Scenario 21-1. Take the following information
Q201: For the following questions, use the diagram
Q204: If the marginal propensity to consume is