Refer to the graph above, in which D_t is the transactions demand for money, D_m is the total demand for money, and S_m is the supply of money. The market is initially in equilibrium at a 6 percent interest rate. If the money supply increases, then S_m₂ will shift to: A) S_m₃ and the interest rate will be 4 percent B) S_m₃ and the interest rate will be 8 percent C) S_m₁ and the interest rate will be 8 percent D) S_m₁ and the interest rate will be 4 percent

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The Answer of Refer to the graph above, in which D_t is the transactions demand for money, D_m is the total demand for money, and S_m is the supply of money. The market is initially in equilibrium at a 6 percent interest rate. If the money supply increases, then S_m₂ will shift to: A) S_m₃ and the interest rate will be 4 percent B) S_m₃ and the interest rate will be 8 percent C) S_m₁ and the interest rate will be 8 percent D) S_m₁ and the interest rate will be 4 percent

Refer to the Graph Above, in Which Dt Is the Transactions

Refer to the Graph Above, in Which D_t Is the Transactions