According to Which Theory Do Changes in the Interest Rate

question 88

Multiple Choice

According to which theory do changes in the interest rate bring the money market into equilibrium?

• A)both liquidity preference theory and classical theory
• B)neither liquidity preference theory nor classical theory
• C)liquidity preference theory, but not classical theory
• D)classical theory, but not liquidity preference theory

---

Definitions:

Balanced Scorecard

A strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organizational performance against strategic goals.

Performance Measures

Key indicators used to evaluate the efficiency, effectiveness, and performance of an organization or individual.

Nonfinancial Measures

Performance indicators that are not expressed in monetary units but are qualitative or quantitative measures of a company's performance, such as customer satisfaction.

Investment Center

A business unit or segment within a larger corporation, with control over its investments, expenses, and revenues, often judged by its return on investment.