When the Fed buys government bond from a bank, then, bank will acquires money which it can lend out, thus, leading to an increase to money supply.
The open market operations entails the purchase and sales of government bonds by the Federal Reserve (Fed).
- When Fed purchases government securities on open market,, this increases the reserves of commercial banks, increases the price of government securities, reduces overall interest rates etc.
Therefore, when the Fed buys the government bond from a bank, then, the bank will acquires money which it can lend out, thus, leading to an increase to money supply.
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This is true .............
The Keynesian model is an economic theory developed by John Keynes to analyze the Great Depression in the 1930s. In this model, he advocated for increased government spending and lower taxes in an attempt to stimulate consumer demand to pull the economy out of the depression.
Answer:
The correct answer is letter "B": limits on interest rates charged by credit card companies.
Explanation:
A Price Ceiling is a maximum amount a seller can charge for a product or service. A regulating authority -usually the local government- enforces price ceilings and they are typically set to protect low-income consumers for being priced-out of markets of essential goods and services.
Apartments provide a common example. Some cities provide price ceilings on what the landlords can charge for rent. A price ceiling in credit card interest rates would all into this category as well.
Answer:
Smart.
Explanation:
Nathan's employees are ensuring themselves job security by extending the process to guarantee there is always work for them to do.
