According to Keynes's Theory of Liquidity Preference,velocity Increases When

question 46

Multiple Choice

According to Keynes's theory of liquidity preference,velocity increases when

• A)income increases.
• B)wealth increases.
• C)brokerage commissions increase.
• D)interest rates increase.

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Definitions:

Operating Policies

Guidelines, rules, and procedures established by an organization to govern its operations and decision-making processes.

Asset Revaluation Reserve

An equity account that records increases in the carrying amount of a company's assets, reflecting changes in value over time.

General Reserve

A reserve fund set aside out of profits for the purpose of strengthening the company's financial position and fulfilling future needs or contingencies.