The Liquidity Preference Function Shows That as ________

question 62

Multiple Choice

The liquidity preference function shows that as ________.

• A)real income decreases,so does the demand for real money balances
• B)the nominal interest rate increases,so does the demand for real money balances
• C)real income decreases,so does the real interest rate
• D)all of the above
• E)none of the above

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Definitions:

Customer

Someone who pays for a product or service.

Geoffrey Moore

An American organizational theorist, management consultant, and author known for his work on the technology adoption life cycle and marketing strategies for high-tech products.

Chasm

A significant gap or barrier that must be overcome, often used metaphorically in business and technology adoption contexts.

Technology Adoption Life Cycle

A model in sociology which explains how a new product or innovation is adopted or accepted, based on the demographic and psychological traits of specific groups of adopters.