Refer to the Graph Above, in Which D_t Is the Transactions

question 145

Multiple Choice

Refer to the graph above, in which D_t is the transactions demand for money, D_m is the total demand for money, and S_m is the supply of money. If the interest rate was 4 percent, the asset demand for money would be:

• A) $125
• B) $175
• C) $200
• D) $225

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