What is the Theory of Liquidity Preference? How does it help explain the downward slope of the aggregate-demand curve?

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter8: Macroeconomic Equilibrium: Aggregate Demand And Supply
Section: Chapter Questions
Problem 16E
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What is the Theory of Liquidity Preference? How does it help explain the downward slope of the aggregate-demand curve?
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