According to the Theory of Liquidity Preference,money Demand

question 62

Multiple Choice

According to the theory of liquidity preference,money demand

• A)and the money supply are positively related to the interest rate.
• B)and the money supply are negatively related to the interest rate.
• C)is negatively related to the interest rate,while the money supply is independent of the interest rate.
• D)is independent of the interest rate,while money supply is negatively related to the interest rate.

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Definitions:

Motivation Process

The motivation process involves the psychological mechanisms and forces that drive an individual to act or perform towards achieving certain goals.

Unsatisfied Needs

Conditions or desires that have not been fulfilled, which can motivate behavior in an effort to satisfy them.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, suggesting that people are motivated by five basic categories of needs: physiological, safety, love/belonging, esteem, and self-actualization.

Self-Actualization Needs

The highest level in Maslow's hierarchy of needs, representing the pursuit of realizing one's potential and seeking personal growth and peak experiences.