According to Keynes, the supply of money with respect to interest rate is
In the elementary Keynesian money-market diagram, the nominal money supply is fixed by policy and does not respond to the interest rate: perfectly inelastic. Perfectly,…
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According to Keynes, the supply of money with respect to interest rate is
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Correct answer B
In the elementary Keynesian money-market diagram, the nominal money supply is fixed by policy and does not respond to the interest rate: perfectly inelastic. Perfectly, moderately or unit-elastic supply would introduce a different assumed supply response.
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UGC NET Economics