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suter [353]
1 year ago
14

When the federal reserve purchases a government bonds from banks, reserves in the banking system ________ and the monetary base

________, everything else held constant.
Business
1 answer:
Semmy [17]1 year ago
7 0

When the federal reserve buys government bonds from banks, the monetary base and banking system reserves <u>both increases</u> while keeping all other factors constant.

The Federal Reserve, sometimes known as the Fed, is the most influential economic organization in the United States and maybe the whole world. Its primary duties include controlling the money supply, determining interest rates, and overseeing the financial markets.

In exchange for monthly interest payments, a bondholder lends money to a business or the government for a predetermined period of time. When the bond matures, the bond's issuer pays the investor its money back.

The Fed will buy bonds from banks to increase the amount of cash available, which will provide funds to the banking sector. The Fed will remove capital from the banking system by selling bonds to banks in order to reduce the amount of money in circulation.

Learn more about Federal Reserve

brainly.com/question/28197262

#SPJ4

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According to the path-goal theory of House and others, what do leaders assume?
bezimeni [28]

Base on the path-goal theory of House, Subordinates are motivated by believing that more effort improves job performance .

<h3>What is path-goal theory?</h3>

The path-goal theory states stressed that a leader's behavior is contingent on the satisfaction and motivation of their employees.

This is the reason why, Subordinates of the organization are motivated by believing that more effort improves job performance .

Learn more about path-goal theory at;

brainly.com/question/11555274

8 0
2 years ago
Current news and politics is full of concern about the environment, particularly as it is related to oil use and the auto indust
alina1380 [7]

Answer:

It is true that raising gasoline prices (either by producing less of it, or by adding taxes) would reduce gasoline use. The concept of price elasticity of demand can helps us explain why.

Explanation:

A good can be either elastic or inelastic depending on its price elasticity of demand. A price elasticity of demand of less than 1 is considered inelastic, while a price elasticity of demand higher than 1 is considered elastic.

Elastic goods are those whose quantity demanded falls or rises more than the price. Inelastic goods are those whose quantity demanded falls or rises less than the price.

Gasoline is a inelastic good in the short-term because even with a price hike, most people will still buy gasoline because they need to move around. However, in the long-term, gasoline becomes more elastic because people replace their buy electric cars, or cars that use less fuel, etc.

What this tells us is that raising gasoline prices can reduce gasoline use in the long-term.

A built-in injustice in this measure is that it affects the poor disproportionally. Poor people also need cars to get around, and a rise in the gasoline price means that they have less money for other basic needs.

8 0
3 years ago
Please and thank you
uysha [10]

1. Annual percentage rate

2. Secured card

3. Cash advance

4. Balance transfer

I hope this helps!

5 0
3 years ago
Read 2 more answers
If economists calculate the gdp for 2009, using current prices of year 2009, what are they estimating?
Vlad [161]
They are estimating the Nominal GDP. The Nominal GDP measures the quarterly economic output that occurred in the year. This would analyze production, employment, all the elements in the financial circulation. This is different from the real GDP because here it would include the inflation of prices that occurred. Nominal GDP only reflects on the economical changed within the current year regardless of inflation. 
6 0
3 years ago
The pursuit of an activity for an outcome that is separate from the person is called
Masteriza [31]
A pursuit of an exercise for an outcome that is separate from the person is called extrinsic motivation.
EM refers to an action that is induced by external rewards such as money, fame, grades, and praise. This type of motivation appears from outside the individual, as aversed to intrinsic motivation.
3 0
3 years ago
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