of dollars) Value of Money {HP} 1.5 Price Level (P) 0.80 1.00 1.33 2.00 money Now consider the relationship the typical transaction requires 0.?5 the price level and the quantity of money that people demand. The lower the price leyel, the le money people will wish to hold in the form of currency or demand deposits 1 Assume that the Fed initially 2.66 puantity of money supplied at $3.5 billion