Liquidity preference

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Science and technology

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What Wikipedia says

In macroeconomic theory, liquidity preference is the demand for money, considered as liquidity. The concept was first developed by John Maynard Keynes in his book The General Theory of Employment, Interest and Money (1936) to explain the determination of the interest rate by the supply and demand for money.

Excerpt from the Wikipedia article “Liquidity preference”, under the CC BY-SA 4.0 license. Read the article on Wikipedia