A question from AP Macro short answer and essay questions.
1) What is the basic goal of monetary policy?
2) What are the tow reason people wish to hold money? How are these two reasons related to the functions of money?
3) Explain the determinant of each of the tow demands for money and how a change in the size of those determinants will affect the a mount of money people wish to hold.
4. The rate of the interest is a price. Of what good or service is it the price? Explain how demand and supply determines this price.