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.

---

Definitions:

Hydroelectric Power

Renewable energy generated by using the movement of water through dams to produce electricity.

Japanese Colonialism

The period during which Japan extended its influence and control over various territories and peoples, primarily in Asia, through colonization, expansion, and imperial administration.

European Colonialism

The policy or practice by which European nations extended their control over foreign territories for economic and political gain.

Manufacturing Facilities

Buildings or complexes where goods are produced on a large scale using machinery and human labor.