In the Keynesian Liquidity Preference Framework,a Rise in the Price

question 39

Multiple Choice

In the Keynesian liquidity preference framework,a rise in the price level causes the demand for money to ________ and the demand curve to shift to the ________,everything else held constant.

• A)increase;left
• B)increase;right
• C)decrease;left
• D)decrease;right

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Definitions:

Ampulla

A dilated section of a canal or duct, such as the ampulla of Vater in the digestive system, which aids in the digestion process by releasing bile and pancreatic juices into the small intestine.

Ossicles

The three small bones in the middle ear called the malleus, incus, and stapes, which help in transmitting sound vibrations to the inner ear.

Malleus

Bone found in the middle ear that assists in the transmission of sound to the inner ear; also called the hammer.

Tympanic Membrane

A thin membrane that separates the external ear from the middle ear and vibrates in response to sound waves; also known as the eardrum.