2. The following table shows Uma’s estimated annual benefits of holding different amounts of money: (LO1)

Average money holdings ($) Total benefit ($) 500 35 600 47 700 57 800 65 900 71 1,000 75 1,100 77 1,200 77 a. How much money will Uma hold on average if the nominal interest rate is 9 percent? 5 percent? 3 percent? Assume that she wants her money holding to be a multiple of $100. (Hint: Make a table comparing the extra benefit of each additional $100 in money holdings with the opportunity cost, in terms of forgone interest, of additional money holdings.) b. Graph Uma’s money demand curve for interest rates between 1 percent and 12 percent.