Multiple Choice
The theory of liquidity preference illustrates the principle that
A) monetary policy can be described either in terms of the money supply or in terms of the interest rate.
B) monetary policy can be described either in terms of the exchange rate or the interest rate.
C) monetary policy must be described in terms of the money supply.
D) monetary policy must be described in terms of the interest rate.
Correct Answer:
Verified
Correct Answer:
Verified
Q86: Figure 34-4.On the figure,MS represents money supply
Q87: Figure 34-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2297/.jpg" alt="Figure 34-1
Q88: To decrease the interest rate the Federal
Q89: An increase in the interest rate could
Q90: The most important reason for the slope
Q93: Changes in the interest rate bring the
Q94: Which of the following statements is correct?<br>A)Both
Q95: As the interest rate falls,<br>A)the quantity of
Q96: Figure 34-2.On the left-hand graph,MS represents the
Q187: Monetary policy<br>A)must be described in terms of