Why Is the Money Supply Curve Vertical

question 69

Multiple Choice

Why is the money supply curve vertical?

• A) The quantity of money supplied increases when the value of money increases.
• B) The quantity of money supplied increases when the price level decreases.
• C) The quantity of money supplied increases only if people desire to hold more money.
• D) The quantity of money supplied increases only if the central bank increases the money supply.

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Decision-making Process

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