The Theory of Liquidity Preference Assumes That the Nominal Supply

question 21

Multiple Choice

The theory of liquidity preference assumes that the nominal supply of money is determined by the

• A)level of real output only.
• B)interest rate only.
• C)level of real output and by the interest rate.
• D)Federal Reserve.

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Definitions:

Preschooler

A child typically between the ages of 3 and 5 years who is not yet attending kindergarten.

Ignore

Deliberately paying no attention to something or someone.

Parental Warmth

A parenting style characterized by affection, nurturing, and support, contributing positively to child development.

Genetic Factors

Aspects of an individual's genes or hereditary influence that affect their physical and mental characteristics, health conditions, and susceptibilities.