Multiple Choice
According to liquidity preference theory,an increase in the price level causes the interest rate to
A) increase,which increases the quantity of goods and services demanded.
B) increase,which decreases the quantity of goods and services demanded.
C) decrease,which increases the quantity of goods and services demanded.
D) decrease,which decreases the quantity of goods and services demanded.
Correct Answer:

Verified
Correct Answer:
Verified
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