According to liquidity preference theory, equilibrium in the money market is achieved by adjustments in?
Written by YouCanDoIt! on November 30th, 2008
investing1987 asked:
a. the price level.
b. the interest rate.
c. the exchange rate.
d. real wealth.
David
Posted in money | Tags: Equilibrium, Interest Rate, Liquidity Preference Theory, Money Market, Rate C
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3
PM
b - the interest rate.
This is the only item the government can truly adjust.