According to Liquidity Preference Theory,a Decrease in the Price Level

question 22

Multiple Choice

According to liquidity preference theory,a decrease in the price level shifts the

• A)money demand curve rightward,so the interest rate increases.
• B)money demand curve rightward,so the interest rate decreases.
• C)money demand curve leftward,so the interest rate decreases.
• D)money demand curve leftward,so the interest rate increases.

---

Definitions:

Data Marker

A graphical representation of individual data points in a chart or graph, such as a bar, line, or dot.

Embedded Object

An object that is inserted into a document while still maintaining a connection to the source application, enabling it to be edited.

Source Program

The original code written in a programming language that is then compiled or interpreted to be executed by a computer.

Embedded Object

An item that is inserted into a document but continues to exist as a separate file, allowing for dynamic updates from the source file.