Keynes's Liquidity Preference Theory Indicates That the Demand for Money

question 43

Multiple Choice

Keynes's liquidity preference theory indicates that the demand for money

• A)is purely a function of income,and interest rates have no effect on the demand for money.
• B)is purely a function of interest rates,and income has no effect on the demand for money.
• C)is a function of both income and interest rates.
• D)is a function of both government spending and income.

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Definitions:

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The assessment of an individual's or organization's performance relative to others based on specific criteria or standards.

Absolute Distance

A measure of the physical space between two points, often determined by a standard unit of length.

Behaviorally Anchored Rating Scales (BARS)

A performance appraisal method that rates behavior in terms of a scale showing specific examples of employee actions that represent various levels of performance.

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