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.

---

Definitions:

Top-Down

A management approach where decisions and directions come from the upper levels of an organization to the lower levels.

Explicit Coercion

The use of direct force or threats to compel someone to act in a desired way against their will.

Implicit Coercion

A form of pressure or influence that is not explicitly stated but is understood or implied in interactions.

Risky

Involving or exposed to a high degree of uncertainty and the potential for loss or harm.