According to the Theory of Liquidity Preference,which Variable Adjusts to Balance

question 109

Multiple Choice

According to the theory of liquidity preference,which variable adjusts to balance the supply and demand for money?

• A) interest rate
• B) exchange rate
• C) quantity of output
• D) price level

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Definitions:

Location

The particular place or position where something occurs or is situated.

Market-Based Groupings

A method of organizing market segments or categories based on shared characteristics, preferences, or behaviors of the consumer groups.

Customer Segments

The division of a market into distinct groups of buyers based on different needs, characteristics, or behaviors.

Functional Groupings

the organization of objects, tasks, or responsibilities based on their purpose or similarity in function.