Multiple Choice
According to the theory of liquidity preference, the money supply
A) and money demand are positively related to the interest rate.
B) and money demand are negatively related to the interest rate.
C) is negatively related to the interest rate while money demand is positively related to the interest rate.
D) is independent of the interest rate, while money demand is negatively related to the interest rate.
Correct Answer:
Verified
Correct Answer:
Verified
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