Changes in the Interest Rate Bring the Money Market into Equilibrium

question 93

Multiple Choice

Changes in the interest rate bring the money market into equilibrium according to

• 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.

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Definitions:

ASME

Stands for the American Society of Mechanical Engineers, an organization that develops and publishes standards for engineering materials, products, systems, and services.

American Society

Typically refers to a professional organization or association in the United States dedicated to a specific field or interest.

Mechanical Engineers

Professionals who apply principles of physics and materials science for the design, analysis, manufacturing, and maintenance of mechanical systems.

Diameter

A straight line segment passing through the center of a body or figure, especially a circle or sphere, and terminating at the perimeter or surface.