question archive Use Keynes' "Liquidity Preference Theory," to predict how each of the following shocks would affect real interest rates in the short run, all else equal
Use Keynes' "Liquidity Preference Theory," to predict how each of the following shocks would affect real interest rates in the short run, all else equal
Subject:EconomicsPrice:2.86 Bought3
Use Keynes' "Liquidity Preference Theory," to predict how each of the following shocks would affect real interest rates in the short run, all else equal. For each shack, be sure to clearly state a predicted effect on interest rates (up, down, or no change}, and illustrate your prediction with a suppiyfdemand diagram for the money market. b. the expected rate of inflation increases c. real, aggregate income increases
