Jashan Gill My Bb Cour ECON 1103 - W22 - Due April 8 @ 11:59PMPM 1 1VU - VVCC - DUG AJITIUG The total demand for money is equal to the transactions demand plus the asset demand for money. 1. Assume that each dollar held for transactions purposes is spent on the average 4 times per year to buy final goods and services. If nominal GDP is 800 billion dollars, what is the transaction's demand for money? Number 2. The table below shows the asset demand at certain rates of interest. Using your answer to part 1, complete the table to show the total demand for money at various rates of interest. Interest rate Asset demand Total demand (in %) (billions) (billions) 8 60 Number 100 Number 140 Number 180 Number If the money supply is 280 billion, what will be the equilibrium rate of interest? Number If the money supply rises to 360, will be the new equilibrium rate of interest? Number If GDP rises, what will be the effect on the rate of interest? Submit Assignment Quit & Save Back Question Menu - Next P MacBook Air 44 DII DD F12 F5 F6 F7 F9 F10 F11 F8 & 6 8 9