Solved

According to Liquidity Preference Theory,a Decrease in Money Demand for Some

Question 161

Multiple Choice

According to liquidity preference theory,a decrease in money demand for some reason other than a change in the price level causes


A) the interest rate to fall,so aggregate demand shifts right.
B) the interest rate to fall,so aggregate demand shifts left.
C) the interest rate to rise,so aggregate demand shifts right.
D) the interest rate to rise,so aggregate demand shifts left.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q157: Other things the same,a decrease in the

Q158: Figure 34-2.On the left-hand graph,MS represents the

Q159: According to the theory of liquidity preference,which

Q162: If expected inflation is constant, then when

Q162: According to liquidity preference theory,the money-supply curve

Q163: According to classical macroeconomic theory,<br>A)the price level

Q164: Figure 34-3. <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2297/.jpg" alt="Figure 34-3.

Q165: Figure 34-4.On the figure,MS represents money supply

Q166: Figure 34-4.On the figure,MS represents money supply

Q200: When the Fed buys government bonds, the