Question: ECON 1. According to liquidity-preference theory, how does an increase in the price level a'ect the interest rate and output demanded, respectively? The interest rate

ECON

1. According to liquidity-preference theory, how does an increase in the price level a'ect the interest rate and output demanded, respectively? The interest rate decreases, and output demanded decreases. The interest rate decreases, and output demanded increases. The interest rate increases, and output demanded decreases. The interest rate increases, and output demanded increases

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