money supply schedule
money supply schedulea schedule that depicts the amount of MONEY supplied and the INTEREST RATE. In some analyses, the MONEY SUPPLY is drawn as a vertical straight line; that is, the money supply is exogenously determined, being put into the economic system ‘from outside’ by the government (for example, government-issued notes and coins which form part of‘narrow’ M0 money). However, a significant part of the ‘wider’ money supply (M3 money) is endogenously determined - for example, bank deposits are ‘created’ by the banking system and these are highly interest rate-sensitive. Thus, as a general proposition, the higher the rate of interest (the higher the return on loanable funds), the greater the quantity of money supplied (see Fig. 128 ).
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005