According to the theory of liquidity preference, an economys interest rate adjusts a. to balance the supply
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According to the theory of liquidity preference, an economy’s interest rate adjusts
a. to balance the supply and demand for loanable funds.
b. to balance the supply and demand for money.
c. one-for-one to changes in expected inflation.
d. to equal the interest rate prevailing in world financial markets.
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According to the theory of liquidity preference which was developed by John Maynard Keynes an econom...View the full answer
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