In His Liquidity Preference Framework,Keynes Assumed That Money Has a Zero

question 18

Multiple Choice

In his liquidity preference framework,Keynes assumed that money has a zero rate of return; thus,when interest rates ________ the expected return on money falls relative to the expected return on bonds,causing the demand for money to ________.

• A) rise; fall
• B) rise; rise
• C) fall; fall
• D) fall; rise

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Definitions:

General Motors

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A public market for buying and selling company stock and derivatives at an agreed price.

Risk Reduction

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