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Economics (AS & A Level) · Feb / March 2021 · Paper 32 · Question 25

9708Money and banking

Which combination is consistent with liquidity preference theory?

  1. Aspeculative; yes; no
  2. Bspeculative; no; yes
  3. Ctransactions; no; no
  4. Dtransactions; yes; no

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Correct answer: A. speculative; yes; no

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