The quantity supplied of money is assumed (in the textbook)to be
A) inversely related to the interest rate.
B) directly related to the interest rate.
C) independent of the interest rate.
D) determined exclusively by banks.
E) c and d

Question

Quizplus · Accepted Answer

The quantity supplied of money is typically considered to be independent of the interest rate because it is determined by the central bank's monetary policy decisions, not by market interest rates.

The Quantity Supplied of Money Is Assumed (In the Textbook)to