If the Central Bank Is Targeting the Money Supply, the Money

Multiple Choice

If the central bank is targeting the money supply, the money supply is ________ and ________ with respect to the nominal interest rate.

A) equal to money velocity; is vertical
B) whatever level is dictated by the president; is horizontal
C) whatever level is dictated by the central bank; is horizontal
D) whatever level is dictated by the central bank; is vertical
E) whatever level is dictated by the central bank; slopes downward