Liquidity Preference Theory Pdf Download - http://bit.ly/2cgDUrN


Liquidity Preference Theory Pdf Download

KEYNES,,LIQUIDITY,,PREFERENCE,,THEORY,,OF,,INTEREST,,Keynes,,defines,,the,,rate,,of,,interest,,as,,the,,reward,,for,,parting,,with,,liquidity,,for,,a,,specified,,period,,of,,time.,,For,,other,,uses,,,see,,Liquidity,,preference,,(Venture,,capital).,,Though,,the,,supply,,of,,money,,is,,a,,function,,of,,the,,rate,,of,,interest,,to,,a,,certain,,degree,,,yet,,it,,is,,considered,,to,,be,,fixed,,by,,the,,monetary,,authorities.,,When,,,,the,,,,interest,,,,rate,,,,decreases,,,,people,,,,demand,,,,more,,,,money,,,,to,,,,hold,,,,until,,,,the,,,,interest,,,,rate,,,,increases,,,,,which,,,,would,,,,drive,,,,down,,,,the,,,,price,,,,of,,,,an,,,,existing,,,,bond,,,,to,,,,keep,,,,its,,,,yield,,,,in,,,,line,,,,with,,,,the,,,,interest,,,,rate.,,,,2.,,,,The,,,amount,,,of,,,money,,,demanded,,,for,,,this,,,purpose,,,increases,,,as,,,income,,,increases.,,, 084f2db8c6

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