What is the theory of liquidity preference?
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What determines the interest rate according to the theory of liquidity preference?
Explain and critically discuss the liquidity preference theory of interest. Can the interest rate be zero? Give reason for your answer.
Which of the following is not a motive for holding money in Keynes's liquidity preference theory?
A.The inflation expectations motive.
B.The precautionary motive.
C.The speculative motive.
D.The transactions motive.