Business, 17.12.2019 21:31 leleee10

According to liquidity preference theory, a decrease in money demand for some reason other than a change in the price level causes

a. the interest rate to fall, so aggregate demand shifts right.
b. the interest rate to fall, so aggregate demand shifts left.
c. the interest rate to rise, so aggregate demand shifts right.
d. the interest rate to rise, so aggregate demand shifts left.

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