According to Liquidity Preference Theory,a Decrease in the Price Level

question 132

Multiple Choice

According to liquidity preference theory,a decrease 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.

---

Definitions:

Reactive Approach

A method where actions or decisions are taken in response to events or situations rather than by initiating them.

International Businesses

Companies that operate across national borders, engaging in international trade or investment.

Federal Trade Commission

A U.S. government agency responsible for protecting consumers and ensuring a strong, competitive market by enforcing antitrust and consumer protection laws.

Online Advertising

A form of marketing and advertising which uses the internet to deliver promotional marketing messages to consumers.