A change in the interest rate does not affect the quantity of money supplied. This means that:
a. the money supply curve is negatively sloped.
b. the money supply curve is vertical.
c. the money supply curve is horizontal.
d. the money supply curve is a 45 degree line drawn from the origin.
e. the money supply curve is kinked.
Question 2
Which of the following is likely to result in a larger equilibrium quantity exchanged?
a. An increase in both demand and supply.
b. A decrease in both demand and supply.
c. An increase in demand and a decrease in supply.
d. A decrease in demand and an increase in supply.
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