Question: Use the following graph to answer the next question. 21 Sm3 Smi Sm2 C D 01:19:10 B Dm2 Rate of Interest (%) A E G

Use the following graph to answer the next question. 21 Sm3 Smi Sm2 C D 01:19:10 B Dm2 Rate of Interest (%) A E G -Dm1 F H Dm3 O Q3 Q 1 Q2 Quantity of Money The graph shows the supply and demand for money where Dm1, Dm2, and Dm3 represent different demands for money and Sm1, Sm2, and Sm3 represent different levels of the money supply. The initial equilibrium point is B. What will be the new equilibrium point following an increase in the transactions demand for money

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