Multiple Choice
According to the Liquidity Preference Theory which of the following statements is correct?
A) Interest rates are a "reward" to savers
B) Transactions, precautionary and speculative motives are principal reasons why businesses borrow
C) The total demand for money is the sum of the transactions, precautionary and speculative demands
D) The supply of money is assumed to be elastic
E) Government decisions concerning the money supply are based primarily on interest rates
Correct Answer:
Verified
Correct Answer:
Verified
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