Question
a. Explain various motives of liquidity preference. b. How does Tobin's approach to liquidity preference differ from Keyness liquidity preference function? c. What is' liquidity
a. Explain various motives of liquidity preference.
b. How does Tobin's approach to liquidity preference differ from Keyness liquidity preference function?
c. What is' liquidity trap rate of interest'? Discuss its implications from the point of view of the monetary policy aiming at full employment.
Step by Step Solution
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The detailed answer for the above question is provided below a 1 Transaction Motive Investors may prefer liquidity when they need to make large purcha...
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The Nature and Properties of Soils
Authors: Nyle C. Brady, Ray R. Weil
14th edition
013227938X, 978-0132279383
