According to the Theory of Liquidity Preference,if Output Decreases

question 119

Multiple Choice

According to the theory of liquidity preference,if output decreases

• A)people want to hold more money.This response is shown as a movement along the money demand curve.
• B)people want to hold more money.This response is shown as a shift of the money demand curve.
• C)people want to hold less money.This response is shown as a movement along the money demand curve.
• D)people want to hold less money.This response is shown as a shift of the money demand curve.

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Definitions:

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