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3A. List the four factors that change the demand for money.

3B. Construct a primary money market. In constructing the money market ensure the supply curve reflects an upward-sloping supply curve as configured in question 1.
3C. Depict changes to the market if there is an increased reluctance among consumers to carry debt.

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Final answer:

The four factors that change the demand for money are changes in income levels, interest rates, prices, and consumer expectations. A primary money market is a financial market where short-term loans are traded, and the supply curve reflects an upward-sloping supply curve. If consumers become more reluctant to carry debt, it would decrease the demand for money and lead to a decrease in the equilibrium quantity and interest rate in the money market.

Step-by-step explanation:

3A. The four factors that change the demand for money are changes in income levels, changes in interest rates, changes in prices, and changes in consumer expectations.

3B. A primary money market is a financial market where short-term loans are traded. In this market, the supply curve reflects an upward-sloping supply curve as the interest rate increases, lenders are willing to supply more money.

3C. If there is an increased reluctance among consumers to carry debt, it would decrease the demand for money. This would lead to a shift in the demand curve to the left, resulting in a decrease in both the equilibrium quantity and the equilibrium interest rate in the money market.

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