The Supply Curve of Money Is Vertical Because the Quantity

question 29

Multiple Choice

The supply curve of money is vertical because the quantity of money supplied increases

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

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Definitions:

Acceptable Name

A name for a chemical substance that follows current nomenclature rules and is agreed upon by scientific organizations.

Compound

A substance made up of two or more different elements that are chemically bonded together in a fixed ratio.

Common Name

The simplified, non-scientific name of a chemical substance or organism that is generally known and used.

Compound

A substance made up of two or more different elements chemically bonded together in a fixed ratio.