According to the Theory of Liquidity Preference,if the Interest Rate

question 81

Multiple Choice

According to the theory of liquidity preference,if the interest rate rises

• A)people want to hold more money.This response is shown by moving to the right along the money demand curve.
• B)people want to hold more money.This response is shown by shifting the money demand curve right.
• C)people want to hold less money.This response is shown by moving to the left along the money demand curve.
• D)people want to hold less money.This response is shown by shifting the money demand curve left.

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