The supply of money is depicted as an upward sloping line that depends directly on the interest rate.

Question

Quizplus · Accepted Answer

The supply of money is typically depicted as a vertical line, indicating that it is controlled by central banks and not directly affected by changes in the interest rate. However, changes in the interest rate can indirectly affect the supply of money through their impact on banks' willingness to lend and individuals' demand for loans.

The Supply of Money Is Depicted as an Upward Sloping