Does the supply of money depend on the interest rate? If not explain why. 1. Does the supply of money depend on the interest rate? If not explain why. 2. How did the classical economists transform the equation of exchange into the quantity theory of money? 3. Why was Keynes pessimistic about the effectiveness of an expansionary monetary policy in a period of recession and what did he suggest? 4. What is the short-term effect of an expansionary monetary policy according to the monetarists? 5. Which monetary tool(s) did the Federal Reserve use to fix the economy during the 2007-2008 crisis? Answer preview to does the supply of money depend on the interest rate? If not explain why. APA 873 words Get instant access to the full solution from yourhomeworksolutions by clicking the purchase button below Related Questions: How does this policy affect the supply of and demand for products and services United States Economy Monetary policy Monetary policy How independent of each other are monetary policy and fiscal policy Discuss the impact of current fiscal and monetary policy on the economy