Question: a. Explain why you would be more or less willing to buy a share of Google stock in the following situations: (Discuss factors related to

a. Explain why you would be more or less willing to buy a share of Google stock in the following situations: (Discuss factors related to course materials regarding asset demand and its determinants)

i. You expect the stock to appreciate in value,

ii. Prices in bond market become more volatile.

b. Does an increase in money supply decrease the interest rate? Discuss in terms of liquidity effect, income effect, price level effect and expected inflation effect.

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