On the Graph That Depicts the Theory of Liquidity Preference

question 113

Multiple Choice

On the graph that depicts the theory of liquidity preference,

• A)the demand-for-money curve is vertical.
• B)the supply-of-money curve is vertical.
• C)the interest rate is measured along the horizontal axis.
• D)the price level is measured along the vertical axis.

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Definitions:

Self-efficacy

A belief in one's own capability to complete tasks and reach goals.

Bandura

Refers to Albert Bandura, a psychologist known for his work on social learning theory, emphasizing the role of observational learning, imitation, and modeling in behavior.

Confidence

The feeling of self-assurance arising from one's appreciation of their own abilities or qualities.

Operant Conditioning

A training technique in which a behavior's force is changed using either positive reinforcement or negative consequences.