Which of the following is correct with regard to the supply of money?
A) The money supply is inversely related to the interest rate.
B) The money supply is independent of the interest rate.
C) The money supply is positively related to the interest rate with a relatively flat slope.
D) The money supply curve is horizontal.
E) The money supply is positively related to the interest rate with a relatively steep slope.
Correct Answer:
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