The theory which argues that the risk-free interest rate is determined by the interaction of the demand for credit and the nation's supply of credit is known as the:
A) Classical Theory of Interest Rates
B) Liquidity Preference Theory of Interest Rates
C) Efficient market hypothesis
D) Efficient Markets Theory
E) None of the above

Question

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The Answer of The theory which argues that the risk-free interest rate is determined by the interaction of the demand for credit and the nation's supply of credit is known as the:
A) Classical Theory of Interest Rates
B) Liquidity Preference Theory of Interest Rates
C) Efficient market hypothesis
D) Efficient Markets Theory
E) None of the above

The Theory Which Argues That the Risk-Free Interest Rate Is