Question: 2. Explain why you would be more or less willing to buy a house under the following circumstances: a. You just inherited $100,000. More, because

2. Explain why you would be more or less willing to buy a house under the following circumstances: a. You just inherited $100,000. More, because your wealth has increased 3). Real estate commissions fall from 6% ofthe sales price to 5% of the sales price. More, because the house has become more liquid c. You expect Microsoft stock to double in value next year Less, because its expected return has fallen relative to Microsoft stock d. Prices in the stock market become more volatile. More, because it has become less risky relative to stocks e. You expect housing prices to fall. Less, because its expected return has fallen
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