Changes in the Interest Rate Bring the Money Market into Equilibrium

question 93

Multiple Choice

Changes in the interest rate bring the money market into equilibrium according to

• A)both liquidity preference theory and classical theory.
• B)neither liquidity preference theory nor classical theory.
• C)liquidity preference theory,but not classical theory.
• D)classical theory,but not liquidity preference theory.

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Definitions:

Repressed Belligerence

Stifled feelings of aggression or hostility that may not be expressed openly or directly.

Passive Opposition

A resistance characterized by non-active behaviors, such as procrastination or avoidance, in response to demands or requests from others.

Physical Aggression

The use of physical force with the intent to cause harm or damage to persons or property.

Relational Aggression

A type of aggression in which harm is caused through manipulation or damage to relationships or social status.