Multiple Choice

-Refer to Figure 9.3. The vertical money supply curve M0/P reflects the fact that:
A) bond prices and interest rates are inversely related.
B) the stock of money is determined by the monetary base, bank behaviour and public behaviour and does . not change when the interest rate changes.
C) higher interest rates result in higher opportunity costs of supplying money.
D) lower interest rates result in lower opportunity costs of supplying money.
Correct Answer:
Verified
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