1. What is demand for money?2 What are the determinants of the transactions demand for money?3 Discuss the three most important determinants of money holdings.

4. Describe the demand for money curve. 5. Use the demand for money curve to show how an increase in interest rate changes the quantity of money demanded 6. Use the demand for money curve to show how an increase in real GDP changes the demand for money. 7. Draw a graph showing equilibrium in the money market. Carefully label all curves and explain why the curves have the slopes they do. 8. Draw a graph showing equilibrium in the money market. Use it to explain what happens when the central bank decreases the money supply. 9. Draw a graph showing equilibrium in the money market. Use it to explain what happens when the central bank increases the money supply