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Total demand for money and the supply of money

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Reference no: EM132560040

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. Use the graph below to illustrate the total demand for money and the supply of money.

Instructions: Use the tools provided 'Dm' and 'Sm' to draw the total-demand-for-money curve (Dm) and the money supply curve (Sm) on the graph.

b. What is the equilibrium interest rate?

____ percent

Reference no: EM132560040

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