Multiple Choice
In the liquidity-preference model, an increase in prices causes
A) both the nominal interest rate and the equilibrium quantity of money to decrease.
B) the nominal interest rate to increase and the equilibrium quantity of money to remain unchanged.
C) the nominal interest rate to decrease and the equilibrium quantity of money to remain unchanged.
D) both the nominal interest rate and the equilibrium quantity of money to increase.
Correct Answer:
Verified
Correct Answer:
Verified
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