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The gures below show the demand for money and the money market. T Itsaclions demartd for tangy E E (II III 2 9 {II III

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The gures below show the demand for money and the money market. T Itsaclions demartd for tangy E E (II III 2 9 {II III 3 3 in\" 15' 2 2 I'll II] E .1: '5 '5 5 t 30 60 90 120 150 100 210 240 270 30 60 90 120 150 180 210 240 270 Amount of money demanded [billions of dollars) Armunt of money demanded (bilions of dollars) a] Plot the total demand for money (by plotting at least 2 points) and the equilibrium interest rate. ' Total Demand For Money Line Rate of interest. i (percent) 0 30 '50 90 120 150 130 210 240 270 i Amount of money demanded (billions of dollars) a b) In this graph, at the interest rate i5 0 The amount of money demanded for transactions is $80 billion 0 $80 billion is demanded for transactions, $70 billion is demanded for assets, and the money supply is $150 billion 0 The amount of money demanded for assets is $10 billion 0 The amount of money demanded for transactions is $20 billion c] Suppose the supply of money increases by $100 billion. The equilibrium interest rate would : 0 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 0 rise, the amount of money demanded for transactions would be unchanged, and the amount of money demanded for assets would decline 0 fall, and the amounts of money demanded both for transactions and for assets would increase

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