In the Liquidity-Preference Model

Multiple Choice

In the liquidity-preference model,

A) both the nominal interest rate and the price level in the economy are exogenous variables.
B) both the nominal interest rate and the price level in the economy are endogenous variables.
C) the nominal interest rate is an exogenous variable, while the price level in the economy is an endogenous variable.
D) the nominal interest rate is an endogenous variable, while the price level in the economy is an exogenous variable.