Equilibrium and Disequilibrium in the Money MarketThe following diagram represents the money market in the United States, which is currently in equilibrium.6.0Money supply5.5Money demand5.0 4.5 INTEREST RATE (Percent) 4.0 3.5 3.0Money supplyMoney demand2.52.0 0.60.7 0.8 0.9 1.0 1.1 1.2 1.3 QUANTITY OF MONEY (Trillions of dollars)Suppose the Federal Reserve announces that it is lowering its target interest rate by 75 basis points, or 0.75%. It would achieve this by shifting either the money supp
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