Multiple Choice
Assume the money market is initially in equilibrium.If the price level decreases,then according to liquidity preference theory there is an excess
A) supply of money until the interest rate increases.
B) supply of money until the interest rate decreases.
C) demand for money until the interest rate increases.
D) demand for money until the interest rate decreases.
Correct Answer:
Verified
Correct Answer:
Verified
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