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The following data was compiled by the BLYS-Ful Pharmaceutical Group. Draw the graph showing the assets demand curve.(2pts) Interest rate (%) 12 10 8

 

The following data was compiled by the BLYS-Ful Pharmaceutical Group. Draw the graph showing the assets demand curve.(2pts) Interest rate (%) 12 10 8 6 (Billions) Asset demand $50 80 110 140 (Billions) Total demand $ $ $ a. Assume that each dollar held for transactions purposes is spent on the average five (5) times per year to buy final goods and services. If the nominal G.D.P. is $15,000 billion ($15 trillion), what is the transaction demand? (3pts) b. Using your answer to part "a," complete the table above. Note: Show your work. (3pts) Hint: Transactions demand for money (D) is nominal GDP divided by the number of times a dollar held for transactions is spent.

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