According to the Theory of Liquidity Preference, If the Supply

question 34

Multiple Choice

According to the theory of liquidity preference, if the supply of real money balances exceeds the demand for real money balances, individuals will:

• A) sell interest-earning assets in order to obtain non-interest-bearing money.
• B) purchase interest-earning assets in order to reduce holdings of non-interest-bearing money.
• C) purchase more goods and services.
• D) be content with their portfolios.

---

Definitions:

Hopelessness

A feeling of despair and the belief that there is no possibility of a positive outcome.

Cognitive Variables

Factors within cognitive psychology that influence how an individual interprets, processes, and remembers information.

Retrograde Amnesia

A loss of memory for events that occurred before the onset of amnesia, often resulting from trauma or disease.

Suicide Cluster

When two or more suicides or attempted suicides nonrandomly occur closely together in space or time.