In the Keynesian Liquidity Preference Framework,an Increase in the Interest

question 122

Multiple Choice

In the Keynesian liquidity preference framework,an increase in the interest rate causes the demand curve for money to ________,everything else held constant.

• A)shift right
• B)shift left
• C)stay where it is
• D)invert

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Definitions:

Continental Crust

The layer of igneous, sedimentary, and metamorphic rocks that forms the continents and the areas of shallow seabed close to their shores, known as continental shelves.

Rifting

The process of continental crust being pulled apart, leading to the formation of new oceanic crust and the expansion of ocean basins.

Salt Domes

Geological formations created when a thick bed of evaporite minerals (primarily salt) is pushed upward by the pressure of overlying rock layers.

Less Dense

Describes materials that have a lower mass per unit volume compared to others, often leading to buoyancy in fluids.