The Theory of Liquidity Preference States That the Interest Rate

question 49

True/False

The theory of liquidity preference states that the interest rate adjusts to bring money supply and money demand into balance.

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Definitions:

Evolutionary Perspective

A theoretical approach that examines psychological traits, such as memory, perception, or language, from a modern evolutionary perspective, considering how evolutionary processes like natural selection have shaped them.

Behavioural Perspective

An approach in psychology that focuses on observable behaviors and the ways in which they are learned from the environment.

Positive Psychology

A branch of psychology focused on the study of positive human functioning and flourishing on multiple levels, including the biological, personal, relational, institutional, cultural, and global dimensions of life.

Human Existence

Refers to the state or condition of living or being alive, especially considered within the context of human life and experiences.