According to the Keynesian model of the money market,the supply of money

Question

Quizplus · Accepted Answer

According to the Keynesian model of the money market, the supply of money is chosen by the central bank through its monetary policy decisions such as setting interest rates, reserve requirements and open market operations. The model suggests that changes in the money supply through these policy decisions can affect interest rates and level of economic activity. Therefore, option B is the correct answer.

According to the Keynesian Model of the Money Market,the Supply