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Question : The Liquidity Preference Theory of Interest was propounded by : 

Option 1: J. M. Keynes

Option 2: David Ricardo 

Option 3: Alfred Marshall 

Option 4: Adam Smith 


Team Careers360 17th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: J. M. Keynes


Solution : The correct option is J. M. Keynes.

Keynes first proposed the Liquidity Preference Theory of Interest. This fundamental idea of Keynesian economics contends that the supply and demand for money in an economy control the interest rate. Keynes argued that people store money for transactions as well as for safety and speculation.

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