In the Liquidity-Preference Model, the Slope of the Money Supply

question 56

Multiple Choice

In the liquidity-preference model, the slope of the money supply curve implies that

• A)money demand varies directly with the nominal interest rate.
• B)money supply varies directly with the nominal interest rate.
• C)nominal interest rate has no effect on the money demand.
• D)nominal interest rate has no effect on the money supply.

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