In Keynes's liquidity preference framework,if there is excess demand for money,there is
A)an excess demand for bonds.
B)equilibrium in the bond market.
C)an excess supply of bonds.
D)too much money.

Question

Quizplus · Accepted Answer

In Keynes's liquidity preference framework, if there is excess demand for money, it implies that individuals prefer holding money to holding bonds, leading to an excess supply of bonds as people try to sell them to increase their money holdings.

In Keynes's Liquidity Preference Framework,if There Is Excess Demand for Money,there