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According to liquidity preference theory, if the price level decreases, then
Scientific thinking
Involves using systematic, evidence-based methods and critical analysis to solve problems and make decisions.
Rules of thumb
General principles that provide practical instructions or guidance, based on experience rather than theory, for making decisions or solving problems.
Simplifying strategies
Approaches or methods aimed at reducing complexity and making tasks or processes easier to understand and manage.
Heuristics
Mental shortcuts or rules of thumb that simplify decision-making processes, often used when facing complex problems or incomplete information.
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Q303: The additional shifts in aggregate demand that