A Surplus or Shortage in the Money Market Is Eliminated

question 11

Multiple Choice

A surplus or shortage in the money market is eliminated by adjustments in the price level 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:

Individual Control

The extent to which a person feels they have autonomy or influence over their own behavior and decisions.

Task Maturity

Having the skill set necessary to complete a job, as well as the ability to set and meet realistic goals and the ability to take on responsibility for the task.

Seniority

The concept of giving priority to individuals based on their length of service or time spent in a position or organization.

Overloading

The situation wherein a system or individual is given more work or responsibility than they can manage.