Keynes Liquidity Preference Theory of Interest Rate in Hindi

This video discusses the Keynes Liquidity Preference Theory of Interest Rate Determination in detail. The theory determines the interest rate with the help of demand for money and supply of money. So, after introduction, first we will discuss Demand for money, supply of money and then determine the interest rate with the interaction of both the curves. And finally in the last we will discuss some of the limitations of the theory.
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Interest rate is a functiom of demand of money or else there will be abject poverty.The supply of money will be needed more from other countries may be dollarized countries pr imf wb,then the interest rate ceiling will be achieved.Thus the supply of money will be determining the rate of interest. Limitations are just the constancy pf population and the interest rates.Thus we see in case of India the interest rate is much more elastic in case of the rise in population or loss in population that is the regulation is internal but for the immigration the demographic dividend scenario the interest rate may be urging higher but a positive stop.

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Liquidity trap mean. ROI minimum and demand is perfectly elastic m I right

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