« previous next »

Author Question: How would the Fed's sale of government bonds on the open market affect the money supply? What ... (Read 31 times)

abern

  • Hero Member
  • *****
  • Posts: 533
on: Jun 30, 2018
How would the Fed's sale of government bonds on the open market affect the money supply?
 
  What will be an ideal response?

Question 2

The balance of payments accounts record all of the following EXCEPT the country's
 
  A) domestic investment.
  B) international lending.
  C) international borrowing.
  D) change in official reserves.
  E) international trading.


shaikhs

  • Sr. Member
  • ****
  • Posts: 312
Reply #1 on: Jun 30, 2018
Answer to Question 1

The Fed, by selling bonds, is decreasing the supply of money, because it is taking money out of the hands of people who would otherwise deposit it in a bank, which would in turn loan it out, etc.

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

Thyroid conditions cause a higher risk of fibromyalgia and chronic fatigue syndrome.

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

The Pleiades, an open cluster of stars in the constellation of Taurus. The Pleiades, an open cluster of stars in the constellation of Taurus.
In the Tai Forest a female chimp demonstrates a skill once thought to be unique to humans. Here she In the Tai Forest a female chimp demonstrates a skill once thought to be unique to humans. Here she
To cleanse an open wound, begin close to the wound and work outward in full or half circles. To cleanse an open wound, begin close to the wound and work outward in full or half circles.
The default position for the throttle plate is in slightly open position. The servomotor then is ... The default position for the throttle plate is in slightly open position. The servomotor then is ...
Reconstruction Drawing of Trajan's Market Reconstruction Drawing of Trajan's Market
When dry, the long fruits (pods) of the California poppy (Eschscholzia californica) split open sudde When dry, the long fruits (pods) of the California poppy (Eschscholzia californica) split open sudde
Video: B cells and antibodies

For a complete list of videos, visit our video library