The Liquidity-Preference Model Assumes That the Amount People Spend Depends

question 61

Multiple Choice

The liquidity-preference model assumes that the amount people spend depends on

• A)their real incomes and the incomes of other people around them.
• B)the cost of withdrawing money from an ATM.
• C)the probability of theft and loss of money.
• D)their real incomes and prices of goods and services.

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Definitions:

Variance

A statistical measure of dispersion, indicating how spread out the values of a dataset are.

Symbol

A mark or character used as a conventional representation of an object, function, or process.

Numerator

The top number in a fraction, indicating how many parts of a whole are being considered.

Two-tailed Test

A statistical test in which the critical area for rejection of the null hypothesis is on both sides of the distribution.