Problem
1. All else equal, what effect will an expansionary fiscal policy have on the money market, and how will this change impact the effectiveness of the fiscal policy? Draw a graph to illustrate your answer.
2. Explain the differences between the transaction motive for holding money and the speculation motive for holding money.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.