Liquidity preference theory indicates that at lower interest rates

Question

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According to liquidity preference theory, when interest rates are lower, money demand increases because individuals and businesses are less willing to hold onto assets that do not earn a high rate of return. Therefore, they will demand more money and be less willing to lend or invest it, leading to a lower investment and consumption demand. Money supply may or may not be greater as it depends on the actions of central banks.

Liquidity Preference Theory Indicates That at Lower Interest Rates