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According to the "Liquidity Preference" Theory of the Rate of Interest,if

Question 50

Multiple Choice

According to the "liquidity preference" theory of the rate of interest,if the supply of money increases,then,ceteris paribus,bond prices will


A) fall as the rate of interest rises.
B) rise as the rate of interest rises.
C) fall as the rate of interest falls.
D) rise as the rate of interest falls.
E) stay the same.

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