According to Liquidity Preference Theory,a Decrease in the Price Level

question 132

Multiple Choice

According to liquidity preference theory,a decrease in the price level causes the interest rate to

• A)increase,which increases the quantity of goods and services demanded.
• B)increase,which decreases the quantity of goods and services demanded.
• C)decrease,which increases the quantity of goods and services demanded.
• D)decrease,which decreases the quantity of goods and services demanded.

---

Definitions:

Catholic Church

The largest Christian church, led by the Pope, with a global presence and a religious tradition that spans over two thousand years.

Leonid Brezhnev

A prominent Soviet politician who served as the General Secretary of the Communist Party of the Soviet Union from 1964 until his death in 1982.

Mikhail Gorbachev

The last leader of the Soviet Union, known for his policies of glasnost (openness) and perestroika (restructuring) which led to the end of the Cold War.

Nelson Rockefeller

An American businessman and politician who served as the 41st Vice President of the United States from 1974 to 1977 under President Gerald Ford and was the 49th Governor of New York.