In the long run, the interest rate adjusts to balance the supply and demand for money, whereas in the short run, the interest rate adjusts to balance national saving and desired investment.
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Q1: An increase in money demand will raise
Q3: The quantity of money demanded is _
Q4: According to the theory of liquidity preference,
Q5: When the government increases its purchases, the
Q6: Any change in government spending has a
Q7: According to the RBA's policy guidelines, if
Q8: Keynes's theory that the interest rate adjusts
Q9: The theory of Ricardian equivalence suggests that
Q10: Personal income tax revenue and transfer payments
Q11: In the liquidity preference theory, money is
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