hich one of the following statements is false? DA The price-level effect of the growth of money supply leads to lower interest rates. OB. Liquidity preference model suggests that higher GDP growth leads to higher nominal interest rates. OC. The liquidity effect of the growth of money supply leads to lower interest rates. OD. Liquidity preference model suggests that when the bond markets is in excess supply, the money market is in excess demand.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Which one of the following statements is false?
O A The price-level effect of the growth of money supply leads to lower interest rates.
O B. Liquidity preference model suggests that higher GDP growth leads to higher nominal interest rates.
OC. The liquidity effect of the growth of money supply leads to lower interest rates.
O D. Liquidity preference model suggests that when the bond markets is in excess supply, the money
market is in excess demand.
Transcribed Image Text:Which one of the following statements is false? O A The price-level effect of the growth of money supply leads to lower interest rates. O B. Liquidity preference model suggests that higher GDP growth leads to higher nominal interest rates. OC. The liquidity effect of the growth of money supply leads to lower interest rates. O D. Liquidity preference model suggests that when the bond markets is in excess supply, the money market is in excess demand.
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