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please answer QUESTION 4 Sit Sm2 SmJ 8 Rate of Interest 6 D Dm 0 125 175 250 325 Quantity of Money Refer to the

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QUESTION 4 Sit Sm2 SmJ 8 Rate of Interest 6 D Dm 0 125 175 250 325 Quantity of Money Refer to the above graph, in which Dy is the transactions demand for money, Dm is the total demand for money, and Sm is the supply of money. If the money market is in equilibrium at the 6 percent rate of interest and the money supply decreases to Sm 1. the transactions demand for money will be: $50 $100 $125 $175

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