In the Liquidity Preference Model, What Adjusts to Move the Money

question 121

Multiple Choice

In the liquidity preference model, what adjusts to move the money market to equilibrium following a change in the money supply?

• A) planned spending
• B) the interest rate
• C) production
• D) the price level

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Definitions:

Agoraphobia

An anxiety disorder characterized by an intense fear of being in situations where escape might be difficult or where help wouldn't be available if things go wrong.

Obsessive-Compulsive Disorder

A mental disorder characterized by intrusive thoughts that produce anxiety (obsessions) and repetitive behaviors meant to reduce that anxiety (compulsions).

Phobic Disorder

A type of anxiety disorder characterized by an intense and irrational fear of specific objects, activities, or situations that poses little to no actual danger.

Bipolar Disorder

A mental health condition characterized by significant mood swings including manic highs and depressive lows.