1. Please circle the letter next to the right answer In economics, when discussing Bob's "demand for money," we mean How much cash Bob would like to have. The income that Bob would need to satisfy his minimum living roquirements. The quantity of Bob's financial assets that she wishes to hold in non-interest bearing form How much wealth Bob would like to have. 2 b. c. d. 2. Bob borrows $100 form Kathy for one year. At the end of the year, Bob will pay Kathy $110. The interest received by Kathy is _; and the interest rate is a. b. C. d. $10.10% $20, 10% $20, 20% $10,20% 3. a. b. c. d. The demand for money will increase when The aggregate output (Y) increases. The price level decreases The interest rate decreases The price of bonds increases. 4. a. b. c. d. Each of the following will result in an increase in the money demand except An increase in the money supply. An increase in aggregate demand. An increase in aggregate output. An increase in overall price level Page 1 of 9