The supply curve for money ________.
A)is upward sloping with respect to interest rates
B)is fixed to a specified interest rate
C)is fixed regardless of the interest rate
D)is downward sloping with respect to interest rates
E)none of the above

Question

Quizplus · Accepted Answer

The supply curve for money is typically considered to be vertical (or fixed) regardless of the interest rate. This is because the central bank (or monetary authority) controls the supply of money, deciding on a certain amount that does not directly change with interest rates.

The Supply Curve for Money ________