Figure 16-3.

-Refer to Figure 16-3. What quantity is represented by the vertical line on the left-hand graph?
A) the supply of money
B) the demand for money
C) the rate of inflation
D) the quantity of bonds that was most recently sold or purchased by the Federal Reserve

Question

Figure 16-3.
 
-Refer to Figure 16-3. What quantity is represented by the vertical line on the left-hand graph?
A) the supply of money 
B) the demand for money 
C) the rate of inflation 
D) the quantity of bonds that was most recently sold or purchased by the Federal Reserve

Quizplus · Accepted Answer

The vertical line on the left-hand graph typically represents the supply of money, which is fixed at a given point in time by the central bank.

Figure 16-3. -Refer to Figure 16-3. What Quantity Is Represented by the Is