Which line in the graph would best illustrate the supply of money curve?
A) Line 4
B) Line 3
C) Line 2
D) Line 1

Question

Which line in the graph would best illustrate the supply of money curve?
A) Line 4 
B) Line 3 
C) Line 2 
D) Line 1

Quizplus · Accepted Answer

Line 2 represents the increase in the supply of money, which is the movement of the supply curve to the right. This is because the vertical axis represents the price level, and as the central bank increases the supply of money, prices increase as well. Therefore, line 2 represents the shift in the supply curve.

Which Line in the Graph Would Best Illustrate the Supply