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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 | |
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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