The figures below show the demand for money and the money market.

Question 4 [8 points] The figures below show the demand for money and the money market. Asset demand for money \\l 01 OJ .e >1 (d 01 a: 01 (D - m (d g 4.5 3"? I? _| 01 _| 01 40 80 120 160 200 240 280 40 80 120 160 200 240 280 Amount of money demanded (billions of dollars) Amount of money demanded (billions of dollars) a) Plot the total demand for money (by plotting at least 2 points) and the equilibrium interest rate. v Total Demand For Money Line otal Demand For Mone Line Equilibrium Interest Rate Point Rate of Interest, l (percent) 80 120 160 200 240 28 i Amount of money demanded (billions of dollars) b) In this graph, at the interest rate is: O The amount of money demanded for transactions is $70 billion 0 The amount of money demanded for transactions is $90 billion 0 $90 billion is demanded for transactions, $60 billion is demanded for assets, and the money supply is $150 billion 0 The amount of money demanded for assets is $60 billion c) Suppose the supply of money declines by $100 billion. The equilibrium interest rate would : 0 fall, and the amounts of money demanded both for transactions and for assets would increase 0 rise, the amount of money demanded for transactions would be unchanged, and the amount of money demanded for assets would decline O fall, the amount of money demanded for transactions would rise, and the amount of money demanded for assets would decline 0 fall, the amounts of money demanded for transactions would be unchanged, and the amount of money demanded for assets would rise