The money supply curve is determined by all of the following except
A)Federal Reserve policy.
B)The lending behavior of private banks.
C)The willingness of individuals to borrow money.
D)The demand for money.

Question

Quizplus · Accepted Answer

The money supply curve is not determined by the demand for money, as the demand for money is represented by the money demand curve. The money supply curve is determined by the actions of the Federal Reserve and the lending behavior of private banks. Individual willingness to borrow money may influence the demand for loans, but this does not directly impact the money supply curve.

The Money Supply Curve Is Determined by All of the Following