Endogenous money is where the money supply is not determined by the monetary authority, but
A) by the federal government.
B) by the private sector.
C) the consumer.
D) responds to conditions in the economy.
E) by total money demand in the economy.

Question

Quizplus · Accepted Answer

Endogenous money theory suggests that the money supply is determined by the needs of the economy, responding to the demand for loans and credit, rather than being directly controlled by the central bank or government.

Endogenous Money Is Where the Money Supply Is Not Determined