Use the graph below to answer the following questions.Dt is the transactions demand for money, Dm is the total demand for money, and Sm is the supply of money. 
(a) What is the transactions demand for money in this market?
(b) What is the asset demand for money if the interest rate is 4%?
(c) If the money market is in equilibrium at 6%, describe the change that must occur for the equilibrium rate to change to 4%.(d) If the money market is in equilibrium at 6% and the money supply has increased to Sm3, by how much has total demand for money changed?
Definitions:
Cause-And-Effect
The relationship between events where one or more are the result of the other(s), often used in scientific and philosophical contexts to explain causality.
Experimental Conditions
The controlled environments or variables manipulated by researchers to study their effects on the outcomes of experiments.
Replicated
The process of repeating a research study or experiment to verify its results under the same or similar conditions.
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Unwarranted intrusion into someone's personal life without consent.
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