Multiple Choice
According to the theory of liquidity preference,
A) if the interest rate is below the equilibrium level,then the quantity of money people want to hold is less than the quantity of money the Fed has created.
B) if the interest rate is above the equilibrium level,then the quantity of money people want to hold is greater than the quantity of money the Fed has created.
C) the demand for money is represented by a downward-sloping line on a supply-and-demand graph.
D) All of the above are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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