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.

---

Definitions:

U.S. Dollar

The recognized monetary unit of the United States, extensively employed as a standard in global commerce and financial activities.

British Enterprise

Entities engaged in commercial, industrial, or professional activities within the United Kingdom.

Appreciated

The increased value of an asset or currency over time, often due to market or economic factors.

Return on Investment

A ratio that measures the gain or loss generated on an investment relative to the amount of money invested.