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just the answers pls D) increase, increase = 1. In Keynes's liquidity preference framework, as the expected return on bonds increases (holding everything else unchanged),
just the answers pls
D) increase, increase
= 1. In Keynes's liquidity preference framework, as the expected return on bonds increases (holding everything else unchanged), the expected return on money relative to the expected return on bonds, causing the demand for to fall. A) falls; bonds B) falls; money C) rises; bonds D) rises; money 2. Holding everything else constant in the market for money, as the interest rate rises, the opportunity cost of holding money thus making money less desirable. So the quantity of money demanded A) increases; falls B) increases; rises C) remains the same; rises D) decreases; falls and 3. In the market for money, a lower level of income causes the demand for money to the interest rate to , everything else held constant. A) decrease; decrease B) decrease; increase C) increase: decrease Step by Step Solution
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