Liquidity preference theory explains why people prefer to hold cash.
Теория предпочтения ликвидности объясняет, почему люди предпочитают держать наличные.
Definitions
Liquidity preference is an economic theory that describes the demand for money as an asset, emphasizing that individuals prefer to hold liquid assets (cash or easily convertible to cash) over illiquid assets, especially in times of uncertainty. This preference influences interest rates and overall economic activity.
