According to Liquidity Preference Theory,if the Quantity of Money Supplied

question 43

Multiple Choice

According to liquidity preference theory,if the quantity of money supplied is greater than the quantity demanded,then the interest rate will

• A)increase and the quantity of money demanded will decrease.
• B)increase and the quantity of money demanded will increase.
• C)decrease and the quantity of money demanded will decrease.
• D)decrease and the quantity of money demanded will increase.

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