Equilibrium in money market .

Explanation:

Figure 1 illustrates the equilibrium in the money market.

In Figure 1, the horizontal axis measures the quantity of money and the vertical axis measures the interest rate. The curve D_t represents the transaction demand for money and D_a represents the asset demand for money. The curve S_m represents the supply of money. The money market is in equilibrium at the point where the aggregate money demand is equal to the aggregate money supply.

Option (d):

Figure 1 panel ‘a’ illustrates that the transaction demand for money remains the same $100 billion regardless of interest rate and has an inverse relationship between asset demand for money and interest rate...