Economy, asked by limbajijadhav8095, 1 month ago

Interest is a reward for parting with liquidity is according to​

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Answered by anshitas953
1

Here is your answer mate:

According to Keynes, the rate of interest is a purely monetary phenomenon. It is the reward for parting with liquidity for a specific period of time. Thus, like the price of a commodity, the rate of interest is determined by the demand for and the supply of money.

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