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STatiana [176]
1 year ago
10

when the fed buys government bonds, group of answer choices the money supply decreases and the federal funds rate decreases. the

money supply decreases and the federal funds rate increases. the money supply increases and the federal funds rate increases. the money supply increases and the federal funds rate decreases.
Business
1 answer:
faust18 [17]1 year ago
5 0

The Fed's open market bond purchases will increase the money supply. If it sells bonds on the open market, the amount of money in circulation will fall.

<h3>What is the process of Open Market Operations?</h3>

This is why. The Fed purchases a Treasury bond from one of its principal dealers when it makes a bond purchase. One of the 23 financial institutions authorized to do business with the Fed is included. These dealers regularly deal in government bonds and regard the Fed as a regular client. It is important to note that the government issued the bonds that are being sold on the secondary open market months or years ago, and they won't mature for another few months or years.

To learn more about Open Market Operations refer to:

brainly.com/question/16260032

#SPJ4

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Why do most economists believe that it is important for a country’s central bank be independent of the rest of the country’s cen
ohaa [14]

Answer:

For economists is important to avoid political interferance in the monetary policy. Populist governments often use the creation of money to justify their political programs, causing inflation and distortions on the market.

In the last report of FOMC is highlighted the behaviour of market labour and the lower expectations of inflation.

Explanation:

There are two tools commonly used in political economy to finance government programs: taxation and paper currency print. When the central bank is not independent, the government has an incentive to print money to fund their programs, causing inflation. In economic science has been demonstrated that inflation is always caused by monetary phenomena.

5 0
2 years ago
What does the communication technique "slow down and be patient" mean
vladimir2022 [97]

Answer:

Slow your speech so the person has time to think about each word you say.

Explanation:

These are the options for the question

Avoid looking at your watch when giving care. Slow your speech so the person has time to think about each word you say. Slow your body movements and wait as long as it takes for the person with dementia to respond.

Communication technique are ways of passing information from one person to another, the communication technique "slow down and be patient" symbolized that when you are making a speech, you need to Slow your speech so the person has time to think about each word you say, and a he/she will be able to give the necessary response or act accordingly to the speech.

7 0
3 years ago
Which is the final stage of the purchase decision process?.
Alisiya [41]

Answer: The final stage is Post-Purchase Behavior

Explanation:

8 0
2 years ago
A company reports the following amounts at the end of the year:
Inga [223]

Answer:

33.33%

Explanation:

Given:

Sales revenue = $360,000

Cost of goods sold = $240,000

Net income = $53,000

Now,

the gross profit = Sales revenue - Cost of goods sold

or

The gross profit = $360,000  - $240,000  = $120,000

Thus,

the company's gross profit ratio = \frac{\textup{Gross Profit}}{\textup{Sales revenue}}

or

The company's gross profit ratio =  \frac{120,000}{\textup{360,000}

or

The company's gross profit ratio = 33.33%

8 0
3 years ago
As a system goes from state to state , its entropy decreases. What can you say about the number of microstates corresponding to
hram777 [196]

Answer:

B. A has more microstates than B.

Explanation:

Since on going from state A to state B the entropy is decreasing, that is the freedom of movement and the number of ways of arrangement is decreasing and thereby the number of microstates also decreases.  

Therefore, A has more microstates than B.

4 0
2 years ago
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