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 initially in equilibrium at a 6% rate of interest. If the supply of money increases as shown, then the asset demand for money will increase by
A. $75.
B. $325.
C. $125.
D. $200.
Answer: A
You might also like to view...
An annual household income of $19,000 would not be in the lowest quintile in 2005
Indicate whether the statement is true or false
When money serves as a standard for comparing values of different things, it is functioning as a
A) store of value. B) hedge against inflation. C) standard of deferred payment. D) unit of accounting.
The cost of a choice is
A) the price of the product selected. B) the price of the product not selected. C) the next best opportunity. D) all of the opportunities given up.
The labor market is composed of
A. a relatively homogeneous supply of labor and downward-sloping demand curve. B. a vertical supply curve for labor and relatively elastic market demand. C. many submarkets for labor of different types. D. more teenagers than any other age group of labor.