Question: Explain how the following changes would affect the amount ofmoney an individual demanded based on the Inventory-Theoreticapproach on the transaction demand for money: An increase

  1. Explain how the following changes would affect the amount ofmoney an individual demanded based on the Inventory-Theoreticapproach on the transaction demand for money:
  1. An increase in the interest rate paid on bonds.
  2. An increase in the brokerage fee for bond markettransactions.
  3. An increase in income.
  4. An increase in the length of the payment period, for examplefrom a week to a month.

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