Economics 9708 · AS & A Level · Oligopoly

Oligopoly — practice question

According to liquidity preference theory, which money balances change in response to a change in the interest rate?

  • Aactive balances: no; idle balances: yes
  • Bactive balances: no; idle balances: no
  • Cactive balances: yes; idle balances: yes
  • Dactive balances: yes; idle balances: no

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