Liquidity Preference Refers Directly to Keynes' Theory Concerning

question 76

Multiple Choice

Liquidity preference refers directly to Keynes' theory concerning

• A)the effects of changes in money demand and supply on interest rates.
• B)the effects of changes in money demand and supply on exchange rates.
• C)the effects of wealth on expenditures.
• D)the difference between temporary and permanent changes in income.

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Definitions:

Hawthorne Studies

A series of experiments conducted in the 1920s and 1930s that concluded social and psychological factors affect productivity and work conditions.