Multiple Choice
The theory of interest which assumes that the money and capital markets are highly efficient social institutions in digesting and reacting to new information is known as:
A) Rational Expectations
B) Classical Theory
C) Liquidity Preference
D) Loanable Funds
E) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
Q7: According to the classical theory of interest,
Q8: A government securities dealer buys a 12
Q9: Using each of the sentences or phrases
Q10: According to the long-run view of interest
Q11: Which of the following statements describes a
Q13: In the loanable funds theory the demand
Q14: The theory which argues that the risk-free
Q15: Equilibrium in the foreign currency markets means
Q16: A stable equilibrium interest rate in the
Q17: Rising business profits usually are associated with