On a Diagram Where the Interest Rate and the Quantity

question 358

Multiple Choice

On a diagram where the interest rate and the quantity of money demanded are shown on the vertical and horizontal axes respectively, the total demand for money can be found by

• A) horizontally adding the transactions and the asset demand for money.
• B) vertically subtracting the transactions demand from the asset demand for money.
• C) horizontally subtracting the asset demand from the transactions demand for money.
• D) vertically adding the transactions and the asset demand for money.