Multiple Choice
A surplus or shortage in the money market is eliminated by adjustments in the price level according to
A) both liquidity preference theory and classical theory.
B) neither liquidity preference theory nor classical theory.
C) liquidity preference theory,but not classical theory.
D) classical theory,but not liquidity preference theory.
Correct Answer:
Verified
Correct Answer:
Verified
Q7: According to liquidity preference theory,if the price
Q8: The interest rate that the Federal Reserve
Q9: People hold money primarily because it<br>A)increases in
Q10: An increase in the U.S.interest rate<br>A)raises the
Q12: In the graph of the money market,the
Q13: If there is excess demand for money,then
Q14: According to classical macroeconomic theory,<br>A)output is determined
Q15: If the interest rate decreases<br>A)or if the
Q16: With respect to their impact on aggregate
Q63: When there is an excess supply of