According to Liquidity Preference Theory,if the Quantity of Money Supplied

question 43

Multiple Choice

According to liquidity preference theory,if the quantity of money supplied is greater than the quantity demanded,then the interest rate will

• A)increase and the quantity of money demanded will decrease.
• B)increase and the quantity of money demanded will increase.
• C)decrease and the quantity of money demanded will decrease.
• D)decrease and the quantity of money demanded will increase.

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Definitions:

Owen

Robert Owen was a Welsh textile manufacturer, philanthropic social reformer, and one of the founders of utopian socialism and the cooperative movement.

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Social reform movement of the nineteenth century driven by the belief that by establishing small communities based on common ownership of property, a less competitive and more individualistic society could be developed.

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