Exhibit: Market for Real Money Balances 
Based on the graph, if the interest rate is r1, then people will _____ bonds, and the interest rate will _____.
Definitions:
Transaction
A Transaction is an exchange or transfer of goods, services, or funds between two or more parties.
Income
Income encompasses the money or assets that an individual or business receives, usually in exchange for providing a good or service or through investing capital.
Note Receivable
A promissory note held by the creditor, evidencing a debtor's obligation to pay back a loan or other credit extended.
Sells
The act of giving up ownership of an asset in exchange for money or equivalent.
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