« previous next »

Author Question: How would the Fed's sale of government bonds on the open market affect the money supply? What ... (Read 58 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?

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

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Defibrillator. Defibrillators are devices that supply a voltage charge to the heart in the hope of r Defibrillator. Defibrillators are devices that supply a voltage charge to the heart in the hope of r
Myocardial Oxygen supply and demand Myocardial Oxygen supply and demand
Masaccio, The Tribute Money. Masaccio, The Tribute Money.
Free Energy Rules: The Second Law in Open Systems Free Energy Rules: The Second Law in Open Systems
Blood Supply to the Lungs Blood Supply to the Lungs
A government of Ontario 364-day T-bills with a face value of $50 000 were purchased on January ... A government of Ontario 364-day T-bills with a face value of $50 000 were purchased on January ...
Video: Endocytosis -Types and Phagocytosis

For a complete list of videos, visit our video library