In the Cambridge approach, if k is .5, total output is $50 billion, and the money supply is $100 billion, the price level is

AIG provide CDS against

A) insolvency. B) default risk. C) illiquidity. D) none of the above

Assume the money market is initially in equilibrium. If the price level decreases, then according to liquidity preference theory there is an excess

a. supply of money until the interest rate increases. b. supply of money until the interest rate decreases. c. demand for money until the interest rate increases. d. demand for money until the interest rate decreases.