(Solved): fill in all the boxes Use the graph below to answer the following questions: Dt is the transacti ...

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 transactions demand for money in this market? 2. What is the asset demand for money if the interest rate is $3\%$ ? 3. If the money market is in equilibrium at $5\%$, what change in money supply must occur for the equilibrium rate to change to $3\%$ (include a negative if a decrease in money supply) 4. If the money market is in equilibrium at $7\%$ and the money supply has increased to $S_{m3}$, by how much has total demand for money changed?