Multiple Choice
According to the theory of liquidity preference, if output increases
A) people want to hold more money. This response is shown as a movement along the money demand curve.
B) people want to hold more money. This response is shown as a shift of the money demand curve.
C) people want to hold less money. This response is shown as a movement along the money demand curve.
D) people want to hold less money. This response is shown as a shift of the money demand curve.
Correct Answer:
Verified
Correct Answer:
Verified
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