Question: Liquidity Preference Framework. The Liquidity Preference Framework explains three effects that shift the money demand, and also explains the effect that shifts the money supply.

Liquidity Preference Framework. The Liquidity Preference Framework explains three effects that shift the money demand, and also explains the effect that shifts the money supply. First, please explain these effects. Next, based on Liquidity Preference Framework, what will happen over time to increase money supply growth? Thiere are three possibilities. Finally, briefly explain what will likely happen in the next 2 years by combining the liquidity preference framework and the recent Fed meeting information (2022 Dec meeting and 2023 Feb meeting)

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