The relationship between interest rate, aggregate income, and price level goes arm in arm, because of all the spending of the consumers in the households, business, government, and other countries that are willing to do at each price level." One example of my transaction demand is when I receive my bi-weekly income and I need to put half of the income aside until the next two weeks because I have to pay my mortgage. Another transaction demand is when I hold money from the beginning of the month for the purchase of food and household things that are needed for the end of the month