Changes in the Interest Rate Bring the Money Market into Equilibrium

question 93

Multiple Choice

Changes in the interest rate bring the money market into equilibrium according to

• A)both liquidity preference theory and classical theory.
• B)neither liquidity preference theory nor classical theory.
• C)liquidity preference theory,but not classical theory.
• D)classical theory,but not liquidity preference theory.

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Definitions:

Invertebrates

Animals that lack a vertebral column, or backbone, including species such as insects, molluscs, and crustaceans.

Natural Resources

Materials or substances occurring in nature which can be exploited for economic gain, such as minerals, forests, water, and fertile land.

Dust Bowl

A period of severe dust storms in the 1930s that greatly damaged the ecology and agriculture of US and Canadian prairies.