Use the graph below to answer the following questions:

D_t is the transactions demand for money,

D_m is the total demand for money, and

S_m is the supply of money.

1. What is the transaction demand for money in this market?

2. What is the asset demand for money if the interest rate is 4 %?

3. If the money market is in equilibrium at 6 %, what change in money supply must occur for the equilibrium rate to change to 4 % (include a negative if a decrease in money supply)

4. If the money market is in equilibrium at 8 % and the money supply has increased to S_m3, by how much has total demand for money changed?

DT = 120

SM1 = 170

SM2 = 220

SM3 = 270