According to the liquidity preference theory of interest, an increase in uncertainty, other things being equal, will:

Related MCQs

• Who propounded liquidity preference theory of interest?
• The Time- Preference Theory of Interest was expounded by-----------
• According to --------- theory of interest, the rate of Interest is the price of credit which is determined by the demand and supply for loanable funds.
• According to ---------- theory, Interest is the reward for the productive use of the capital which is equal to the marginal productivity of physical capital.
• ----------- defined Interest as “an index of the community’s preference for a dollar of present over a dollar of future income.”
• In the loanable fund’s theory of interest determination, an increase in the productivity of capital equipment should lead to:
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