In Keynes's Liquidity Preference Framework,if There Is Excess Demand for Money,there

question 3

Multiple Choice

In Keynes's liquidity preference framework,if there is excess demand for money,there is

• A)excess demand for bonds.
• B)equilibrium in the bond market.
• C)excess supply of bonds.
• D)too much money.

---

Definitions:

August

The eighth month of the year in the Gregorian calendar.

Full Settlement

Full settlement is the process of completely resolving an obligation or debt through payment or another agreed-upon method, leaving no outstanding amounts.

Discount Period

The time frame in which a discount is offered for early payment on goods or services, or the period before a financial instrument reaches maturity.

Full Settlement

A financial agreement where all claims or debts between parties are resolved by paying a single lump sum.