Which of the Following Is Correct

question 214

Multiple Choice

Which of the following is correct?

• A)Both liquidity preference and classical theory assume the interest rate adjusts to bring the money market into equilibrium.
• B)Both liquidity preference and classical theory assume the price level adjusts to bring the money market into equilibrium.
• C)Liquidity preference theory assumes the interest rate adjusts to bring the money market into equilibrium.Classical theory assumes the price level adjusts to bring the money market into equilibrium.
• D)Liquidity preference theory assumes the price level adjusts to bring the money market into equilibrium.Classical theory assumes the interest rate adjusts to bring the money market into equilibrium.

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Definitions:

Random Sample

A subset of individuals randomly selected from a population, intended to represent the whole population in research studies.

Class

A group of students who are taught together in a school or college, or the meeting during which they are taught.

Close Eyes

The act of shutting the eyelids, typically for reasons such as sleep, rest, or shielding the eyes from bright light or discomfort.

Experimenter Bias

A process where the researcher's expectations or preferences influence the outcome of a study, potentially affecting the study's reliability or validity.