Keynes's liquidity preference theory of the interest rate suggests that the interest rate is determined by
A. the supply and demand for labor.
B. aggregate supply and aggregate demand.
C. the supply and demand for loanable funds.
D. the supply and demand for money.
Ans: D. the supply and demand for money.
You might also like to view...
What does a firm's short-run total product curve show and what is its significance?
What will be an ideal response?
The poverty rate _______ between 1993 and 2000 and _____ between 2001 and 2004.
A. fell; fell B. rose; rose C. fell; rose D. rose; fell
Which of the following is true when the price of a good or service rises?
a. Buyers who were already buying the good or service are better off. b. Some buyers exit the market. c. The total consumer surplus in the market increases. d. The total value of purchases before and after the price change is the same.
Suppose Rebecca needs a dog sitter so that she can travel to her sister's wedding. Rebecca values dog sitting for the weekend at $200 . Susan is willing to dog sit for Rebecca so long as she receives at least $175 . Rebecca and Susan agree on a price of $185 . Suppose the government imposes a tax of $30 on dog sitting. What is the deadweight loss of the tax?
a. the maximum value that Rebecca would pay for dog sitting b. the $30 tax c. the lost benefit to Rebecca and Susan because after the tax, Susan will not dog sit for Rebecca d. the lost benefit to Rebecca of being unable to hire a dog sitter because Rebecca is the one who would pay the tax