According to liquidity preference theory,if the quantity of money demanded is greater than the quantity supplied,then the interest rate will
A) increase and the quantity of money demanded will decrease.
B) increase and the quantity of money demanded will increase.
C) decrease and the quantity of money demanded will decrease.
D) decrease and the quantity of money demanded will increase.
Correct Answer:
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Q72: When households find themselves holding too much
Q73: The interest rate falls if
A)the price level
Q74: Figure 34-2.On the left-hand graph,MS represents the
Q75: Figure 34-2.On the left-hand graph,MS represents the
Q76: Figure 34-2.On the left-hand graph,MS represents the
Q78: The interest rate would fall and the
Q79: If,at some interest rate,the quantity of money
Q81: The short-run effects on the interest rate
Q82: People will want to hold less money
Q131: Figure 34-2
(a) The Money Market
(b) The Aggregate
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