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

question 99

Multiple Choice

Keynes's liquidity preference theory indicates that the demand for money is ________ related to ________.

• A)negatively;interest rates
• B)positively;interest rates
• C)negatively;income
• D)negatively;wealth

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Definitions:

Coercive Power

The ability to compel or force someone to do something through threats or force.

Legitimate Power

Power that is officially sanctioned by an organization or institution, and is accepted by members as rightly exercised.

Reward Power

The ability of a person to influence others' actions, behaviors, or attitudes by offering them something desirable.

Salary Raises

Incremental increases in wages given to employees, typically as a reward for performance, tenure, or to adjust for market conditions.