Refer to the given market-for-money diagrams. Curve $D _ { 1 }$ represents the
A) total demand for money.
B) transactions demand for money.
C) asset demand for money.
D) stock of money.

Question

Refer to the given market-for-money diagrams. Curve $D _ { 1 }$ represents the
A) total demand for money. 
B) transactions demand for money. 
C) asset demand for money. 
D) stock of money.

Quizplus · Accepted Answer

Curve D1 represents the transactions demand for money, which is the demand for money to carry out everyday transactions such as buying goods and services. It is not the total demand for money, which would include the asset demand for money as well. It is also not the stock of money, which refers to the total amount of money in circulation.

Refer to the Given Market-For-Money Diagrams D1D _ { 1 }D1​

Refer to the Given Market-For-Money Diagrams $D _ { 1 }$