I am currently studying the demand for money by Blanchard. this model assumes that the amount of money held is basically related to transaction levels and the the attractiveness of bonds.
i.e.: Demand for money = Y . L(i)
where L(i) is a function of the interest rate. My question is this: How does the money demand increase at low-interest rates and decrease at high-interest rates when at the same time bonds are more attractive at low interest rates?