In Liquidity-Preference Theory, an Increase in the Interest Rate Decreases

question 118

True/False

In liquidity-preference theory, an increase in the interest rate decreases the quantity of money demanded, but does not shift the money-demand curve.

---

Definitions:

Sociobiology

An interdisciplinary branch of science that studies the biological underpinnings of social behavior across species.

Empathy

The ability to understand and share the feelings of another person, fostering emotional connection and comprehension.

Altruism

The selfless concern for the well-being of others, often leading to actions that benefit someone other than oneself.

Co-operation

The process of working together towards a common goal, often emphasizing mutual benefit and collaboration.