Homework Answers
A ) Demand for money is upward sloping and B) Demand for money is vertical are FALSE as demand for money is downward sloping
C) is FALSE as supply of money dows not represent a positive relationship between quanity of money supplied and interest rate. Money supply is constant and is shown by a vertical curve
E) is FALSE as banks cannot print money, only the centeral bank can create money by printing
F) is FALSE , US M1 money multiplier as of October 9th 2019 is 1.18 ( Source : FRED)
G) is FALSE as interest rate is the opportunity cost of holding money
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