Economics Question-Are bonds included in NGDP?

QUESTION: At the 4% rate of interest, you keep $2000 of your wealth in bonds and $1000 in your checking account at the bank plus $50 in your purse. Answer the following... 1)What is your quantity of money demanded at 4% interest rate and 2)Would you keep more or less of your wealth in money form if interest rate falls to 3%? Briefly Explain your answer.

Economics Question-Are bonds included in NGDP?inflation rate

I%26#039;ll give you some hints.

In the first question, which of the savings vehicles -- bonds, checking balances, and cash -- count as money? Add them up, and you have your answer.

For the second question, you need to think about how the interest rate affects the demand for money. Why do consumers want to hold their wealth in money, and how does this change if the interest rate falls to 3%?