Keynes's theory that the interest rate adjusts to bring money supply and money demand into balance is called:
A) the theory of sticky wages
B) the theory of sticky prices
C) the classical dichotomy theory
D) the theory of liquidity preference
Correct Answer:
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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
Q9: The theory of Ricardian equivalence suggests that
Q10: Personal income tax revenue and transfer payments
Q11: In the liquidity preference theory, money is
Q12: At a higher price level, the demand
Q13: The multiplier effect suggests that the increase
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