Answer:
d. the interest rate adjusts to balance the supply of, and demand for, money.
Explanation:
In Keynes's view, the interest rate is the premium that economic agents get for delaying the consumption that satisfies them. This is why people decide to save rather than consume. Thus, the consumer decides between present consumption or future consumption, depending on the attractiveness of the interest rate practiced in the market. In other words, the interest rate acts as the beacon between supply and demand for money. When the interest rate is attractive, savers forgo current consumption and save for extra income.
In the early 1700s, the British government made a special deal with the East India Company, an English organization doing trade in the East Indies. They agreed that no other company was allowed to sell tea in Britain or its colonies.
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