According to Liquidity Preference Theory,an Increase in the Price Level

question 135

Multiple Choice

According to liquidity preference theory,an increase in the price level causes the interest rate to

• A)increase,which increases the quantity of goods and services demanded.
• B)increase,which decreases the quantity of goods and services demanded.
• C)decrease,which increases the quantity of goods and services demanded.
• D)decrease,which decreases the quantity of goods and services demanded.

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