« previous next »

Author Question: How would the Fed's sale of government bonds on the open market affect the money supply? What ... (Read 71 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?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Asthma cases in Americans are about 75% higher today than they were in 1980.

Did you know?

Medication errors are more common among seriously ill patients than with those with minor conditions.

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

The oral cavity. Anterior view of the open mouth. The oral cavity. Anterior view of the open mouth.
THE WORLD'S BIGGEST SALE THE WORLD'S BIGGEST SALE
In 2009, historian Woody Holton described how Abigail Adams shrewdly invested in the Continental Con In 2009, historian Woody Holton described how Abigail Adams shrewdly invested in the Continental Con
Using a DMM to measure the open-circuit voltage of a battery. Using a DMM to measure the open-circuit voltage of a battery.
Hydrolysis of peptide bonds Hydrolysis of peptide bonds
Iraqi market Iraqi market
Video: Mitochondrial Structure & ETC Protein Complexes (Protein Complexes and Electron Transport)

For a complete list of videos, visit our video library