Multiple Choice
The liquidity preference theory holds that interest rates are determined by the:
A) supply of and demand for moneyinvestor preference for short-term securties
B) supply of and demand for loanable fundsinvestor preference for higher-yielding long-term securities.
C) "flow" of funds over time
D) "flow" of bank credit over time
Correct Answer:
Verified
Correct Answer:
Verified
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