Would you be more or less willing to buy a share of Microsoft stock in the following​ situations: Your wealth falls.

Would you be more or less willing to buy a house under the following circumstances loading you just inherited $100000 ▼ real estate commissions fall from 6% of the sales price to 5% of the sales price ▼ more willing less willing you?

You would be more willing to buy a house if you just inherited $100,000 because willing to buy a house if real estate commissions fall from 6% b. You would be you now have more wealth to spend on all assets. you now have more money to just buy stocks and bonds. the money inherited can only be spent on buying a house.

Would you be more or less willing to buy gold under the following circumstances loading gold again becomes acceptable as a medium of exchange ▼ less willing more willing prices in the gold market become more volatile ▼ less willing more?

You would be morewilling to buy gold if gold again becomes acceptable as a medium of exchange because gold has become relatively more liquid. You would be lesswilling to buy gold if prices in the gold market become more volatile because gold has become relatively more risky.

What happens to a bond’s price when its market becomes less liquid?

The bond market becomes more liquid. Less because it becomes less liquid relative to bonds. Prices in the bond market become more volatile. More because it becomes less risky relative to bonds.

Are bonds more liquid than gold?

The LBMA said gold had an amihud illiquidity ratio — a tool used to gauge liquidity — of 0.000018, compared to the EBA’s scores of 0.059 for government bonds and 0.188 for corporate bonds. Silver, platinum and palladium were also more liquid than bond markets with ratios between 0.0002 and 0.0017, the LBMA said.

How might a sudden increase in people’s expectations?

How might a sudden increase in people’s expectations of future real estate prices affect interest rates? (Answer: Interest rates would rise. A sudden increase in people’s expectations of future real estate prices raises the expected return on real estate relative to bonds, so the demand for bonds falls.

Can you tell if Maria is more or less risk averse than Jennifer?

Can you tell if Maria is more or less​ risk-averse than​ Jennifer? There is not enough information to tell. In order to decide whether Maria or Jennifer is more risk​ averse, one will need to compare two bonds with the same expected return and different standard deviations of their expected returns.

What causes yields to rise?

A bond’s yield is based on the bond’s coupon payments divided by its market price; as bond prices increase, bond yields fall. Falling interest interest rates make bond prices rise and bond yields fall. Conversely, rising interest rates cause bond prices to fall, and bond yields to rise.

What happens when bond prices become volatile and interest rates rise?

The expected increase in stock prices raises the expected return on stocks relative to bonds and so the demand for bonds falls. The demand curve, Bd, shifts to Predict what will happen to interest rates if prices in the bond market become more volatile. Interest rates will rise. When bond prices become volatile and bonds become riskier, the

How does lower Commission on stocks affect interest rates?

The lower commission on stocks makes them more liquid relative to bonds, and the demand for bonds will fall. The demand curve Bd will therefore shift to the left, and the equilibrium interest rate will rise.

What happens when the Treasury issues more bonds?

Some economists believe that when the Treasury issues more bonds, the demand for bonds increases because the issue of bonds increases the public’s wealth. If this equilibrium interest rate will rise.