In the liquidity-preference theory of interest, the quantity of money demanded for specultative purposes will ordinarily: A. increase with a rise in the interest rate B. increase with a fall in the interest rate C. Decrease with a fall in the interest rate D. Remain constant when the interest rate rises

In the liquidity-preference theory of interest, the quantity of money demanded for specultative purposes will ordinarily: A. increase with a rise in the interest rate B. increase with a fall in the interest rate C. Decrease with a fall in the interest rate D. Remain constant when the interest rate rises

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter14: Money And The Economy

Section: Chapter Questions

Problem 17QP

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	A.	increase with a rise in the interest rate
	B.	increase with a fall in the interest rate
	C.	Decrease with a fall in the interest rate
	D.	Remain constant when the interest rate rises