According to Liquidity-Preference Theory, in Which Circumstance Would the Money-Supply

question 26

Multiple Choice

According to liquidity-preference theory, in which circumstance would the money-supply curve shift left?

• A) if government spending decreased
• B) only if the Bank of Canada chose to decrease the money supply
• C) if the interest rate increased
• D) if the price level increased

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Definitions:

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The reproductive structure of flowering plants, typically consisting of petals, sepals, stamens, and carpels.

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A sturdy vertical structure that supports and maintains the alignment of a fence; often made of wood, metal, or concrete.

Barbed Wire

A type of fencing wire constructed with sharp edges or points arranged at intervals along the strands.

Feet High

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