The money supply curve will be a vertical line, if we consider M1; the money supply curve is an up-sloping line, if we consider M2.

Name: The money supply curve will be a vertical line, if we consider M1; the money supply curve is an up-sloping line, if we consider M2.
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The money supply curve is vertical for M1 because the central bank can control the quantity of M1 in circulation. The money supply curve is upward sloping for M2 because the central bank cannot control the quantity of M2 in circulation.

The Money Supply Curve Will Be a Vertical Line, If