The Theory of Liquidity Preference John Maynard Keynes developed the theory of liquidity preference in order to explain what factors influence the interest rate in the short run.
{"Image DocumentName": "The Theory of Liquidity Preference", "Image ImageDescription": "John Maynard Keynes developed the theory of liquidity preference in order to explain what factors influence the interest rate in the short run. According to the theory, the interest rate adjusts to balance the supply and demand for money. Warning: The theory of interest rates in Chapter 8 no longer applies. That was the long run; now it\u2019s the short run.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}