The concept of 'Liquidity Preference' theory of interest was given by:
A. Knut Wicksell
B. John Maynard Keynes
C. Classical economists
D. Irving Fisher
Answer: Option B
Solution (By JKSSB Mock Tests)
Keynes proposed the liquidity preference theory, which states that the rate of interest is determined by the demand for and supply of money, where demand arises from transactions, precautionary and speculative motives.
Explanation:
Economic planning in developing countries typically aims at accelerating growth, reducing poverty, promoting equity and modernising the economic structure.
No comments yet. Be the first to start the discussion!