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Chapter 3

Economics

Can anyone explain Q.11

Rifhat Khan

CA Inter

★ 28K+

08-Aug-23 20:34

164

Answers (1)

The liquidity preference theory of Keynes states the relationship between interest rate, liquidity preferences, and the quantity or supply of money. It explains the preference for money or liquidity and the reason to demand and get a high-interest rate for long-term financial assets.