Which of the Following Statements Is Correct

question 94

Multiple Choice

Which of the following statements is correct?

• A)Both liquidity preference theory and classical theory assume the interest rate adjusts to bring the money market into equilibrium.
• B)Both liquidity preference theory and classical theory assume the price level adjusts to bring the money market into equilibrium.
• C)Liquidity preference theory assumes the interest rate adjusts to bring the money market into equilibrium;classical theory assumes the price level adjusts to bring the money market into equilibrium.
• D)Liquidity preference theory assumes the price level adjusts to bring the money market into equilibrium;classical theory assumes the interest rate adjusts to bring the money market into equilibrium.

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Definitions:

Unconscious Conflicts

Internal struggles often stemming from repressed thoughts and feelings that lead to psychological tension and symptoms according to psychoanalytic theory.

Hidden Sexual Desires

Unconscious or suppressed sexual feelings that an individual may not be fully aware of or choose not to acknowledge.

Id And Ego

Psychoanalytic terms where the id represents primal desires and the ego the rational part of the psyche that mediates between these desires, reality, and moral standards.

Dorothea Dix

Dorothea Dix was a pioneering 19th-century activist who significantly improved the conditions for the mentally ill and played a key role in the creation of many mental health facilities in the United States.