In the Liquidity-Preference Model, the Nominal Interest Rate Is Represented

question 26

Multiple Choice

In the liquidity-preference model, the nominal interest rate is represented on the vertical axis and the quantity of money is represented on the horizontal axis.Hence,

• A)the money demand curve slopes downward and the money supply curve is vertical.
• B)the money demand curve slopes upward and the money supply curve is horizontal.
• C)both the money demand and money supply curve slope downward.
• D)both the money demand and money supply curve slope upward.

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