Economy, asked by sejalsosta, 5 months ago

Explain the Keynesian Liquidity Preference theory Interest.?

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Answered by vandana5287

Answer:

The Liquidity Preference Theory says that the demand for money is not to borrow money but the desire to remain liquid. In other words, the interest rate is the ‘price’ for money.

John Maynard Keynes created the Liquidity Preference Theory in to explain the role of the interest rate by the supply and demand for money.

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Explain the Keynesian Liquidity Preference theory Interest.? ​

Answers

Explain the Keynesian Liquidity Preference theory Interest.?