In the Liquidity-Preference Model

question 49

Multiple Choice

In the liquidity-preference model,

• A)both the nominal interest rate and the price level in the economy are exogenous variables.
• B)both the nominal interest rate and the price level in the economy are endogenous variables.
• C)the nominal interest rate is an exogenous variable, while the price level in the economy is an endogenous variable.
• D)the nominal interest rate is an endogenous variable, while the price level in the economy is an exogenous variable.

---

Definitions:

Age Cohort

A group of individuals who share a similar age, allowing for statistical analyses and comparisons within a population.

Economic Growth

The increase in the market value of the goods and services produced by an economy over time, typically measured as the percent rate of increase in real gross domestic product (GDP).

Baby Boomers

A demographic group defined by the significant increase in birth rates following World War II, typically considered born between 1946 and 1964.

Age Seniority

The system or practice of giving precedence, respect, or authority to individuals based on their age, often found in traditional societies.