Which one of the following statements is false? O A Liquidity preference model suggests that higher GDP growth leads to higher nominal interest rates. O B. The price-level effect of the growth of money supply leads to lower interest rates O C. The liquidity effect of the growth of money supply leads to lower interest rates. Liquidity preference model suggests that when the bond markets is in excess supply, the money market is in excess demand

Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter14: Modern Macroeconomics And Monetary Policy
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Which one of the following statements is false?
O A Liquidity preference model suggests that higher GDP growth leads to higher nominal interest rates.
O B. The price-level effect of the growth of money supply leads to lower interest rates.
OC. The liquidity effect of the growth of money supply leads to lower interest rates
OD. Liquidity preference model suggests that when the bond markets is in excess supply, the money market is in excess demand
Transcribed Image Text:Which one of the following statements is false? O A Liquidity preference model suggests that higher GDP growth leads to higher nominal interest rates. O B. The price-level effect of the growth of money supply leads to lower interest rates. OC. The liquidity effect of the growth of money supply leads to lower interest rates OD. Liquidity preference model suggests that when the bond markets is in excess supply, the money market is in excess demand
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