Examlex
Which of the following processes is spontaneous?
Liquidity Preference
The desire to hold cash or easily convertible assets rather than investments that might be harder to convert into cash.
Interest Rate
The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.
Loanable Funds
The money available for borrowing in the financial markets, corresponding to savings that are lent out for investment.
Liquidity Preference Theory
A theory suggesting that people prefer to hold their wealth in liquid form for ease of spending but are willing to accept less liquidity for a higher return.
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