According to the Liquidity Preference Model,if the Interest Rate Rises

question 164

Multiple Choice

According to the liquidity preference model,if the interest rate rises above its equilibrium value,the quantity of non-monetary interest-bearing financial assets demanded _____,and this leads to a _____ in the interest rate.

• A) decreases;rise
• B) increases;fall
• C) decreases;fall
• D) increases;rise

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