question 7 (1 point)\nin the keynesian liquidity preference framework, an increase in the interest rate…

question 7 (1 point)\nin the keynesian liquidity preference framework, an increase in the interest rate causes the demand curve for money to ________, everything else held constant.\nshift left\nshift right\nstay where it is\ninvert

question 7 (1 point)\nin the keynesian liquidity preference framework, an increase in the interest rate causes the demand curve for money to ________, everything else held constant.\nshift left\nshift right\nstay where it is\ninvert

Answer

Brief Explanations:

In the Keynesian liquidity preference framework, the demand for money is a function of income and the interest rate. However, a change in the interest rate (with everything else held constant) does not shift the demand curve for money. A shift in the demand curve occurs when non - interest rate factors (like income) change. A change in the interest rate causes a movement along the demand curve for money, not a shift.

Answer:

Stay where it is