In Keynes's Liquidity Preference Framework

question 19

Multiple Choice

In Keynes's liquidity preference framework

• A)the demand for bonds must equal the supply of money.
• B)the demand for money must equal the supply of bonds.
• C)an excess demand of bonds implies an excess demand for money.
• D)an excess supply of bonds implies an excess demand for money.

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Definitions:

Zygomatic Arch

The arch of bone that forms from the temporal process of the zygomatic bone and the zygomatic process of the temporal bone, creating the prominence of the cheek.

Zygomatic Process

A bony projection of the temporal bone that articulates with the zygoma (cheekbone) to form part of the cheek structure.

Temporal Bone

A bone of the skull, situated at the sides and base of the cranium, involved in the protection of the inner ear.

Temporal Process

A projection on the zygomatic bone that helps form the zygomatic arch, connecting the zygomatic bone to the temporal bone of the skull.