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-Refer to the Graph Below, in Which Dt Is the Transactions

question 294

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-Refer to the graph below, in which D<sub>t</sub> is the transactions demand for money, D<sub>m</sub> is the total demand for money, and S<sub>m</sub> is the supply of money. If the market for money is in equilibrium at a 6 percent rate of interest and the money supply increases, then S<sub>m2</sub> will shift to: A) S<sub>m3</sub> and the interest rate will be 4 percent. B) S<sub>m3</sub> and the interest rate will be 8 percent. C) S<sub>m1</sub> and the interest rate will be 8 percent. D) S<sub>m1</sub> and the interest rate will be 4 percent.
-Refer to the graph below, in which Dt is the transactions demand for money, Dm is the total demand for money, and Sm is the supply of money. If the market for money is in equilibrium at a 6 percent rate of interest and the money supply increases, then Sm2 will shift to: -Refer to the graph below, in which D<sub>t</sub> is the transactions demand for money, D<sub>m</sub> is the total demand for money, and S<sub>m</sub> is the supply of money. If the market for money is in equilibrium at a 6 percent rate of interest and the money supply increases, then S<sub>m2</sub> will shift to: A) S<sub>m3</sub> and the interest rate will be 4 percent. B) S<sub>m3</sub> and the interest rate will be 8 percent. C) S<sub>m1</sub> and the interest rate will be 8 percent. D) S<sub>m1</sub> and the interest rate will be 4 percent.

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