According to Liquidity-Preference Theory, If the Price Level Decreases, in Which

question 58

Multiple Choice

According to liquidity-preference theory, if the price level decreases, in which direction does the demand curve shift and how does the interest rate change?

• A) The demand curve shifts right, so the interest rate increases.
• B) The demand curve shifts right, so the interest rate decreases.
• C) The demand curve shifts left, so the interest rate decreases.
• D) The demand curve shifts left, so the interest rate increases.

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Definitions:

Engelhardt

Refers to an individual or concept relevant to a specific scholarly or professional field, possibly associated with ethics or philosophy, requiring additional context for specificity.

Impaired Newborns

Impaired newborns are infants experiencing health issues due to congenital disabilities, infection, injury during birth, or prematurity that affect their normal body functions.

Moral Duty

An obligation to act in a way considered morally right, often based on societal norms, ethical principles, or personal beliefs.

Tristram Engelhardt Jr.

An American philosopher known for his contributions to bioethics, emphasizing the moral pluralism and conflicts in modern healthcare.