When We Assume That the Supply of Money Is a Variable

question 72

Multiple Choice

When we assume that the supply of money is a variable that the central bank controls,we

• A)must then assume as well that the demand for money is not influenced by the value of money.
• B)must then assume as well that the price level is unrelated to the value of money.
• C)are ignoring the fact that,in the real world,households are also suppliers of money.
• D)are ignoring the complications introduced by the role of the banking system.

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