Keynesian Liquidity Preference Theory and Its Relevance to the Caribbean Region•Outline the main concepts of the Liquidity Preference Theory proposed by John Maynard Keynes and discuss its applicability to the Caribbean region.•Discuss the short-term approach to interest rate determination in the Caribbean and factors influencing liquidity preference.•Examine the motives for holding money according to the Liquidity Preference Theory and their impact on interest rates in the Caribbean.

Keynesian Liquidity Preference Theory and Its Relevance to the Caribbean Region•Outline the main concepts of the Liquidity Preference Theory proposed by John Maynard Keynes and discuss its applicability to the Caribbean region.•Discuss the short-term approach to interest rate determination in the Caribbean and factors influencing liquidity preference.•Examine the motives for holding money according to the Liquidity Preference Theory and their impact on interest rates in the Caribbean.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter26: Monetary Policy

Section: Chapter Questions

Problem 3SQ

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Outline the main concepts of the Liquidity Preference Theory proposed by John Maynard Keynes and discuss its applicability to the Caribbean region.
Examine the motives for holding money according to the Liquidity Preference Theory and their impact on interest rates in the Caribbean.
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