Use the following graph to answer the next question.
In the graph, Dt is the transactions demand for money, Dm is the total demand for money, and Sm is the supply of money. The market is in equilibrium at the 6% rate of interest. If the money supply then decreases as shown, the transaction demand for money will change by
A. $0.
B. $75.
C. $175.
D. $125.
Answer: A
Economics
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