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ollegr [7]
3 years ago
6

According to liquidity preference theory, a decrease in the price level causes the interest rate to:a. increase, which increases

the quantity of goods and services demanded. b. decrease, which increases the quantity of goods and services demanded. c. decrease, which decreases the quantity of goods and services demanded. d. increase, which decreases the quantity of goods and services demanded.
Business
1 answer:
mojhsa [17]3 years ago
4 0

Answer:

The correct answer is (B)

Explanation:

Liquidity preference theory emphasised on the interest which investors should demand on long-term investments due to the risk they carry. According to liquidity preference theory, a decrease in the price level shifts the money demand curve leftward. A leftward movement of the money demand curve increases the overall quantity demanded. In that regard, a decrease in interest rate increases the demand for goods and services demanded.

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3 years ago
Most companies allocate facility-level activity costs directly to products for decision-making purposes.True or false?
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Answer:

False

Explanation:

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3 years ago
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Answer:

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7 0
3 years ago
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motikmotik

Answer: A. Impossibility of performance

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8 0
2 years ago
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A

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