The asset demand for money 'Da' is shown in the graph below. The transactions demand for money is $50 billion. The supply of money is $150 billion. a. Show graphically the total demand for money and the supply of money for this economy. Instructions: Use the tools provided 'Dm' and 'Sm' to draw the total-demand-for-money curve (Dm) and the money supply curve (Sm) for this economy. Plot only the endpoints of the line. Your Graph Score: 0% Rate of interest (percent) 14 12 10 8 6 4 2 0 S m Dm 50 100 150 200 250 300 350 Amount of money demanded (billions of dollars) Instructions: Enter your answer as a whole number. b. What is the equilibrium interest rate? percent Dm Sm

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The asset demand for money 'Da' is shown in the graph below. The transactions demand for money is $50 billion. The supply of
money is $150 billion.
a. Show graphically the total demand for money and the supply of money for this economy.
Instructions: Use the tools provided 'Dm' and 'Sm' to draw the total-demand-for-money curve (Dm) and the money supply curve (Sm)
for this economy. Plot only the endpoints of the line.
Your Graph Score: 0%
Rate of interest (percent)
14
12
10
8
6
4
2
0
S
m
Dm
50 100 150 200 250 300 350
Amount of money demanded (billions of dollars)
Instructions: Enter your answer as a whole number.
b. What is the equilibrium interest rate?
percent
Dm
Sm
Transcribed Image Text:The asset demand for money 'Da' is shown in the graph below. The transactions demand for money is $50 billion. The supply of money is $150 billion. a. Show graphically the total demand for money and the supply of money for this economy. Instructions: Use the tools provided 'Dm' and 'Sm' to draw the total-demand-for-money curve (Dm) and the money supply curve (Sm) for this economy. Plot only the endpoints of the line. Your Graph Score: 0% Rate of interest (percent) 14 12 10 8 6 4 2 0 S m Dm 50 100 150 200 250 300 350 Amount of money demanded (billions of dollars) Instructions: Enter your answer as a whole number. b. What is the equilibrium interest rate? percent Dm Sm
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