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| 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 | |
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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. |
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