On a given day the quantity of money is ________ and the supply of money curve is ________.
A) fixed; horizontal
B) fixed; vertical
C) variable; horizontal
D) variable; vertical

Question

Quizplus · Accepted Answer

The quantity of money on a given day is fixed because it is determined by the central bank's monetary policy, and the supply of money curve is vertical because changes in the interest rate do not affect the quantity of money supplied.

On a Given Day the Quantity of Money Is ________