According to Keynes, a shift in liquidity preference is
a. a shift in the money demand schedule drawn against the interest rate as the level of income changes.
b. a change in the amount of money demanded for given levels of the interest rate and income.
c. a shift in individuals' portfolios away from bonds and toward holding an increased amount of money for given levels of the interest rate and income.
d. Either a or c
e. all of the above
E
You might also like to view...
According to this Application, other economists disagree with Professor Gordon and suggest that the ________ will help to increase future growth
A) global interconnectedness B) the Internet C) computer technology D) all of the above
DVDs can be produced at a constant marginal cost, and Roaring Lion Studios is releasing the DVDs for its last two major films. The DVD for Rambeau 17 is priced at $20 per disk, and the DVD for Schreck 10 is priced at $30 per disk
If the Lerner indices for Rambeau 17 divided by the Lerner index for Schreck 10 equals 0.5, what is the constant marginal cost of producing both DVDs? A) MC = $10 B) MC = $15 C) MC = $20 D) MC = $5
The regular pattern of income variation over a person's life is called the
a. earned income cycle. b. substitution effect. c. life cycle. d. pattern of change.
If society has overallocated resources to a particular activity, then the marginal benefits of the activity would be less than the marginal costs.
Indicate whether the statement is true or false