According to Keynes, a shift in liquidity preference is a. a ...

[jon_i]

According to Keynes, a shift in liquidity preference is
 
  a. a shift in the money demand schedule drawn against the interest rate as the level of income changes.
  b. a change in the amount of money demanded for given levels of the interest rate and income.
  c. a shift in individuals' portfolios away from bonds and toward holding an increased amount of money for given levels of the interest rate and income.
  d. Either a or c
  e. all of the above

Question 2

Which of the following statements is (are) correct? Regardless of whether the LM curve is vertical or upward sloping,
 
  a. a money stock target is superior to an interest rate target when the uncertainty facing the policymaker concerns the IS schedule.
  b. an interest rate target is always superior to a money stock target when the uncertainty facing the policymaker concerns the IS schedule.
  c. both a money stock target or interest rate target provide the same results when the uncertainty facing the policymaker concerns the IS schedule.
  d. a money stock target is never superior to an interest rate target when the uncertainty facing the policymaker concerns the IS schedule.

[pratush dev]

Answer to Question 1

E

Answer to Question 2

A

[jon_i]

TYSM

[TheDev123]

Excellent