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Topic 6: The asset market, money, and prices (Determinants of the Demand…

- - - - purchase: central bank purchases government securities from the public => central bank makes money payments => increases the money supply in the economy
      - sale: central bank sells government securities to the public => central bank receives money payments => decreases the money supply in the economy
  - - - risk
      - liquidity
      - expected return
    - - Nonmonetary assets (such as shares and bonds)
      - Money