According to Liquidity Preference Theory

question 33

Multiple Choice

According to liquidity preference theory,

• A)an increase in the interest rate reduces the quantity of money demanded.This is shown as a movement along the money-demand curve.An increase in the price level shifts money demand to the right.
• B)an increase in the interest rate increases the quantity of money demanded.This is shown as a movement along the money-demand curve.An increase in the price level shifts money demand leftward.
• C)an increase in the price level reduces the quantity of money demanded.This is shown as a movement along the money-demand curve.An increase in the interest rate shifts money demand rightward.
• D)an increase in the price level increases the quantity of money demanded.This is shown as a movement along the money-demand curve.An increase in the interest rate shifts money demand leftward.

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Definitions:

Abdominal Aorta

The main artery that runs down the abdomen, supplying oxygenated blood to the abdominal and pelvic organs and the legs.

Ascending Aorta

The ascending aorta is the initial section of the aorta, arising from the left ventricle of the heart and carrying oxygenated blood to the body.

Thoracic Aorta

The section of the aorta that passes through the thorax, supplying blood to the chest wall and thoracic organs.

Cardiac Muscle Fibers

Cardiac muscle fibers are specialized muscle cells in the heart that contract rhythmically to pump blood throughout the body; they are striated and interconnected, facilitating coordinated heart contractions.