« previous next »

Author Question: How would the Fed's sale of government bonds on the open market affect the money supply? What ... (Read 63 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?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

Bacteria have been found alive in a lake buried one half mile under ice in Antarctica.

Many types of edible fungi are grown for the market. Many types of edible fungi are grown for the market.
Siamese Crocodile sleeping with its mouth open to pant Siamese Crocodile sleeping with its mouth open to pant
Norway lobsters on sale at a Spanish market Norway lobsters on sale at a Spanish market
Common hydrogen bonds in biological systems Common hydrogen bonds in biological systems
Figure 7.1 shows the rapid decline in the trust of Americans in government since the 1960s. This de Figure 7.1 shows the rapid decline in the trust of Americans in government since the 1960s. This de
A combination wrench has an open end at one end and a box end at the other end. A combination wrench has an open end at one end and a box end at the other end.
Video: Monohybrid crosses

For a complete list of videos, visit our video library