According to Keynes' Theory of Money Demand,a Low Interest Rate

question 21

Multiple Choice

According to Keynes' theory of money demand,a low interest rate increases the likelihood of a capital ________ and ______ the interest elasticity of money demand.

• A)gain on bonds; reduces.
• B)gain on money; increases.
• C)loss on bonds; reduces.
• D)loss on money; increases.
• E)none of the above.

---

Definitions:

Competence

The ability or skill to do something successfully or efficiently.

Friendliness

The quality of being pleasant, helpful, and inviting towards others.

Dogmatism

The tendency to lay down principles as incontrovertibly true, without consideration of evidence or the opinions of others.

Webinar

An online seminar or workshop where participants can engage in live presentations and discussions via the internet.