Which of the following best describes why the money supply curve is vertical?
Choose 1 answer:
(A) Savers want to supply more money when interest rates are high
B The central bank sets interest rates and changes the quantity of money accordingly
(C) The central bank responds to increases in the interest rate by increasing the quantity of money supplied
(D) Central banks determine the monetary base independent of the interest rate
(E) Individuals hold less money when interest rates increase
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