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:

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The process of creating mental images to represent information, scenarios, or goals, often used as a technique in problem-solving or motivation.

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An individual's confidence in their ability to engage in and manage social interactions effectively.

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