Why Is the Money Supply Curve Vertical

question 58

Multiple Choice

Why is the money supply curve vertical?

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

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