In the Simple Liquidity-Preference Model, the Money Supply Curve Is

question 10

Multiple Choice

In the simple liquidity-preference model, the money supply curve is:

• A) vertical, and it moves at the sole discretion of the Fed.
• B) horizontal, and it moves at the sole discretion of the Fed.
• C) vertical, and it moves when people change their rate of savings.
• D) horizontal, and it moves when people change their rate of savings.

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