On a given day the quantity of money is ___________and the supply of money curve is______________ .
A) variable; vertical
B) fixed; vertical
C) variable; horizontal
D) fixed; horizontal

Question

Quizplus · Accepted Answer

The quantity of money is fixed on a given day as it is determined by various factors such as monetary policy, reserve ratio, and the demand for money. The supply of money curve is vertical because it is determined by the monetary authority, and not affected by changes in price level or other economic factors. Therefore, the best choice is B - fixed; vertical.

On a Given Day the Quantity of Money Is ___________And