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

Economics

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