Multiple Choice
The liquidity preference function shows that as ________.
A) real income decreases,so does the demand for real money balances
B) the nominal interest rate increases,so does the demand for real money balances
C) real income decreases,so does the real interest rate
D) all of the above
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
Q57: According to liquidity preference theory,an increase in
Q58: The IS curve is Y = 20
Q59: Suppose the economy is just recovering from
Q60: "Real money balances" refers to _.<br>A)the quantity
Q61: The MP curve indicates the relationship between
Q63: In the aggregate demand curve,the endogenous variable
Q64: When the Federal Reserve _.<br>A)drains liquidity,the federal
Q65: _ is a good measure of the
Q66: The demand for real money balances _.<br>A)is
Q67: Before the financial crisis of 2007,inflation was