- Refer to the above graph, which shows the supply and demand for money where D_m₁, D_m₂, and D_m3 represent different demands for money and S_m₁, S_m₂, and S_m₃ represent different levels of the money supply. The initial equilibrium point is A. What will be the new equilibrium point following a decrease in the asset demand for money?

Question

- Refer to the above graph, which shows the supply and demand for money where D<sub>m</sub><sub>1</sub>, D<sub>m</sub><sub>2</sub>, and D<sub>m3</sub> represent different demands for money and S<sub>m</sub><sub>1</sub>, S<sub>m</sub><sub>2</sub>, and S<sub>m</sub><sub>3</sub> represent different levels of the money supply. The initial equilibrium point is A. What will be the new equilibrium point following a decrease in the asset demand for money? A) B. B) E. C) F. D) I.

Quizplus · Accepted Answer

The Answer is C

- Refer to the Above Graph, Which Shows the Supply