A-LevelEconomicsThe macroeconomy9708/32 · Oct/Nov 2018 · Q271 Mark
In Keynesian monetary theory, when will an increase in the supply of money not cause a fall in interest rates?
- In Keynesian monetary theory, when will an increase in the supply of money not cause a fall in interest rates? A if bond prices are expected to rise B if investment demand is interest-inelastic C if the liquidity preference schedule is perfectly elastic D if the velocity of circulation of money increases[1]
Mark scheme
Marking points from the official mark scheme (Oct/Nov 2018). The mark or mark type is shown in brackets.
- [1] C
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