Question 11 (1 point) Money is a medium of exchange: we need money to be able to perform our day-to- day transactions. Because of this, the asset demand for money is downward sloping. the transaction demand for money is (almost) perfectly elastic. the asset demand for money is upward sloping. the transaction demand for money is (almost) perfectly inelastic. Question 12 (1 point) Money demand curve is downward sloping because, as interest rate rises, households will need less money for their daily transactions. as interest rate rises, it becomes less attractive for households to hold other financial instruments as a means of saving. as interest rate rises, liquidity provided by holding money looses its attractiveness for households, compared to other financial instruments as a means of saving. as interest rate rises, businesses find it less attractive to borrow for the sake of investment.Question 13 (2 points) The following data is for the hypothetical nations of Alpha and Beta. Q is domestic quantity supplied and Qd is domestic quantity demanded. Domestic market for steel, Domestic market for steel, Alpha Beta Qs P Qd Qs P Qd 60 $5 10 80 $5 20 40 4 20 70 4 30 30 3 30 60 3 40 20 2 40 50 50 10 1 50 40 60 Refer to the above data. The equilibrium world price must be higher than $1 because at $1: both nations want to export steel. Beta wants to import more than Alpha. Alpha wants to export more than Beta. both nations want to import steel.Question 14 (1 point) Assume that it is generally believed that the government's size in Canada is larger than the optimal one. Then, an economist who advocates discretionary fiscal policy would recommend: increases in government spending during recession and tax increases during nflation. tax increases during recession and tax cuts during inflation. tax cuts during recession and reductions in government spending during inflation. tax cuts during recession and tax increases during inflation. Question 15 (1.5 points) Assume there are no investment projects in the economy that yield an expected rate of return of 25 percent or more. But suppose there are $10 billion of investment projects yielding expected returns of at least 20 percent; another $10 billion yielding at least 15 percent; another $10 billion yielding at least 10 percent; and so forth. What will be the equilibrium level of aggregate investment if the real interest rate is 15%? Your