Macroeconomics + Economy 2009 Update 18th Edition by Campbell McConnell, Sean Masaki Flynn,Stanley Brue

Exercise 17

In this graph, at the interest rate i e (5 percent):
A) the amount of money demanded as an asset is $50 billion.
B) the amount of money demanded for transactions is $200 billion.
C) bond prices will decline.
D) $100 billion is demanded for transactions, $100 billion is demanded as an asset, and the money supply is $200 billion.