According to the theory of liquidity preference, an increase in the price level causes the
a. interest rate and investment to rise.
b. interest rate and investment to fall.
c. interest rate to rise and investment to fall.
d. interest rate to fall and investment to rise.
c
Economics
You might also like to view...
The loanable funds market is also referred to as the:
A) spot market. B) credit market. C) exchange market. D) capital market.
Economics
If labor market institutions change so that it becomes easier to find a job, and unemployed people are unemployed for smaller durations of time, what would happen to the natural rate of unemployment?
A. It would increase. B. It would remain the same, since the number of workers has not changed. C. It would decrease. D. There is not enough information to determine what would happen.
Economics