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Discussion 1 Some economists think that the central banks should try to prick bubbles in the stock market before they get out of hand and cause later damage when they burst. How can monetary policy be used to prick a bubble? Explain using the Gordon Growth Model. 1 Page Discussion 2 If you read in the Wall Street Journal that the “smart money” on Wall Street expects stock prices to fall, should you or should you not follow their lead and sell all of your stocks? Would it make a difference in how you respond if it was a long or a short run “smart money” fall due to negative expectations? 1 Page MBA level discussions Reference Mishkin, F.S. (2019). The economics of money, banking, and financial markets (5th ed.). Retrieved from https://www.vitalsource.com/