In Baumol's theory of transaction demand for money, money demand is
1
an increasing function of bond supply, brokerage fee and rate of interest.
2
a decreasing function of nominal GDP and rate of interest, but an increasing function of brokerage fee.
3
a decreasing function of rate of interest, and an increasing function of nominal GDP and brokerage fee.
4
a decreasing function of bond supply and rate of interest, but an increasing function of brokerage fee.