Q.

The Liquidity Preference Theory of Interest was propounded by :

A. J.M. Keynes
B. David Ricardo
C. Alfred Marshall
D. Adam Smith
Answer» A. J.M. Keynes
Explanation: In macroeconomic theory, liquidity preference refers to the demand for money, considered as liquidity. The concept was first developed by John May-nard Keynes in his book The General Theory of Employment, Interest and Money (1936) to explain determination of the interest rate by the supply and demand for money.
2.3k
0
Do you find this helpful?
13

View all MCQs in

Economics (GK)

Discussion

No comments yet