What is liqiudity preference?
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➨In macroeconomic theory, liquidity preference is the demand for money, considered as liquidity. The concept was first developed by John Maynard Keynes in his book The General Theory of Employment, Interest and Money to explain determination of the interest rate by the supply and demand for money.
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MARK ME BRANLIEST
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Liquidity preference, in economics, the premium that wealth holders demand for exchanging ready money or bank deposits for safe, non-liquid assets such as government bonds. ... The concept of liquidity preference was used by Keynes to explain the prolonged depression of the 1930s.
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