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    Principles of Macroeconomics Study Set 8
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    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: How Monetary Policy Influences Aggregate Demand
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    According to the Theory of Liquidity Preference,a Decrease in the Price
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According to the Theory of Liquidity Preference,a Decrease in the Price

Question 73

Question 73

Multiple Choice

According to the theory of liquidity preference,a decrease in the price level causes the


A) interest rate and investment to rise.
B) interest rate and investment to fall.
C) interest rate to rise and investment to fall.
D) interest rate to fall and investment to rise.

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