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:
Physical Material
Substances or components that have mass and occupy space; can be observed and measured physically.
Constant
A fixed value that does not change.
Particles
The small, localized physical entities that make up the structure of matter, ranging from elementary particles to atoms and molecules.
Ordered State
A condition of a system in which its components are arranged in a well-organized pattern or structure, often resulting in reduced entropy.
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