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

question 53

Multiple Choice

According to liquidity preference theory,an increase in the price level shifts the

• A)money demand curve rightward,so the interest rate increases.
• B)money demand curve rightward,so the interest rate decreases.
• C)money demand curve leftward,so the interest rate decreases.
• D)money demand curve leftward,so the interest rate increases.