What Is the Variable That Balances the Money Demand and Supply

question 32

Multiple Choice

What is the variable that balances the money demand and supply in the liquidity-preference and the classical theories?

• A) the interest rate in both theories
• B) the price level in both theories
• C) the interest rate in the liquidity-preference theory and the price level in the classical theory
• D) the price level in the liquidity-preference theory and the interest rate in the classical theory

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Definitions:

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