According to liquidity preference theory, an increase in the price level would ________
A) increase the demand for real money balances
B) decrease the supply of real money balances
C) decrease the real interest rate
D) all of the above
E) none of the above
B
Economics
You might also like to view...
We define a monopoly as a market with
A) one supplier and no barriers to entry. B) one supplier with barriers to entry. C) many suppliers with no barriers to entry. D) many suppliers with barriers to entry. E) a few suppliers and barriers to entry.
Economics
With respect to water and diamonds, water
A) has a higher marginal utility than diamonds. B) has a lower marginal utility than diamonds. C) is cheaper than diamonds because it has a lower total utility. D) is cheaper than diamonds because it has a higher total utility.
Economics