The total demand for money is equal to the transactions demand plus the asset demand for money.(a) Assume that each dollar held for transactions purposes is spent on the average five times per year to buy final goods and services.If nominal GDP is $800 billion, what is the transactions demand?
(b) The table below shows the asset demand at certain rates of interest.Using your answer to part (a), complete the table to show the total demand for money at various rates of interest. 
(c) If the money supply is $240 billion, what will be the equilibrium rate of interest?
(d) If the money supply rises, will the equilibrium rate of interest rise or fall?
(e) If GDP rises, will the equilibrium rate of interest rise or fall?
Definitions:
Professional Accounting Program
A formal education and training program designed to provide knowledge and skills necessary for accounting careers.
Retail Price
The total cost that consumers pay for a product in retail stores, including markups by retailers.
Wholesale Cost
The price charged by manufacturers or distributors to retailers for products, typically lower than the retail price.
Basic Price Per Meal
The standard cost before any discounts or additional fees, for a single meal offering.
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