According to Liquidity Preference Theory,a Decrease in the Price Level

question 22

Multiple Choice

According to liquidity preference theory,a decrease in the price level shifts the

• A)money demand curve rightward,so the interest rate increases.
• B)money demand curve rightward,so the interest rate decreases.
• C)money demand curve leftward,so the interest rate decreases.
• D)money demand curve leftward,so the interest rate increases.

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Definitions:

Embodied Cognition

The belief that the mind's operations are closely tied to how the body interacts with its environment.

Heavy Clipboard

An experimental manipulation in psychology where the weight of a clipboard is used to influence the perception of the importance or seriousness of attached documents.

Psychokinesis

The purported ability to move or manipulate objects with the mind, without physical interaction, a phenomenon not scientifically proven.

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