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

question 73

Multiple Choice

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

• A)interest rate and investment to rise.
• B)interest rate and investment to fall.
• C)interest rate to rise and investment to fall.
• D)interest rate to fall and investment to rise.

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Definitions:

Demand

The measure of a good or service that people intend and are able to acquire at differing prices throughout a designated time span.

Admission Fee

The charge or payment required for entry into an establishment, event, or service.

MR=MC

MR=MC is an economic principle stating that optimal production quantity is reached when marginal revenue equals marginal cost.

Theme Parks

Large outdoor entertainment venues designed around a specific theme, featuring rides, shows, and attractions for visitors.