According to liquidity preference theory, a decrease in money demand for some reason other than a change in the price level causes
a. the interest rate to fall, so aggregate demand shifts right.
b. the interest rate to fall, so aggregate demand shifts left.
c. the interest rate to rise, so aggregate demand shifts right.
d. the interest rate to rise, so aggregate demand shifts left.
a
Economics
You might also like to view...
Which of these is an example of depreciation?
(A) A worker's truck breaks down more often after 80,000 miles of driving. (B) An employer fires a worker for repeatedly arriving late to work. (C) A share of stock declines in value over several months. (D) A clothing store owner reduces the price of a belt by $10 to encourage sales.
Economics
Foreign demand for U.S. dollars also represents a supply of dollars.
Answer the following statement true (T) or false (F)
Economics