money is $150 billion. a. Use the graph below to illustrate the total demand for money and the supply of money. Instructions: Use the tools provided 'Dm' and 'Sm' to draw the total-demand-for-money curve (Dm) and the money supply curve (Sm) on the graph. Rate of interest (percent) 14 12 10 8 10 2 0 50 100 150 200 250 300 350 Amount of money demanded (billions of dollars) b. What is the equilibrium interest rate? percent Tools Dm > Sm ↑

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