According to Liquidity Preference Theory, If the Price Level Decreases

question 103

Multiple Choice

According to liquidity preference theory, if the price level decreases, then

• A)the interest rate falls because money demand shifts right.
• B)the interest rate falls because money demand shifts left.
• C)the interest rate rises because money supply shifts right.
• D)the interest rate rises because money supply shifts left.

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Definitions:

Trait Psychologists

Psychologists who study and classify human personalities based on identifiable traits and characteristics.

Major Aspects

Major aspects typically refer to the most important or significant parts, features, or elements of an object, subject, or concept under consideration.

Person-Situation Debate

A theoretical discourse in psychology about the relative influence of personality traits versus situational factors in determining behavior.

Human Nature

The inherent characteristics, including ways of thinking, feeling, and acting, that all humans are considered to have.