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According to the theory of liquidity preference, if the supply of real money bal...

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According to the theory of liquidity preference, if the supply of real money balances exceeds the demand for real money balances, individuals will:

purchase more goods and services.

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purchase interest-earning assets in order to reduce holdings of non-interest-bearing money.

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be content with their portfolios.

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sell interest-earning assets in order to obtain non-interest-bearing money.

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