The graph in Exhibit 20- 1 shows a typical household’s real money holdings, assuming that real money balances are gradually depleted over the course of the month. Jacques gets paid on the fi rst of...

The graph in Exhibit 20- 1 shows a typical household’s real money holdings, assuming that real money balances are gradually depleted over the course of the month. Jacques gets paid on the fi rst of each month but parties extensively over the next week and is broke for the remainder of the month. Graph Jacques’s real money holdings over the course of a month.