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Tag: Liquidity preference theory with Loan able fund theory

Comparison of Liquidity preference theory with Loan able fund theory

The loan able fund theory of interest and Keynesian liquidity theory of interest are compared on the following grounds. Definition of interest According to Neo-classical theory (Loan able fund theory) of Interest, interest is reward for the use of loan able funds, While, according to Keynesian liquidity theory of interest, is a reward for parting […]

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