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#59314 Bangla Language & Literature General Level 0

According to liquidity preference theory, what will be the result of a reduction in the price of bonds?

  1. A a decrease in the supply of money
  2. B a fall in interest rates
  3. C a reduction in the quality of money demanded
  4. D an increase in the demand for money
Answer: C - a reduction in the quality of money demanded

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