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3 years ago

A nation's central bank makes an open market purchase of 20-year bonds. What is the short-run effect on the nation's economy

Business

1 answer:

maks197457 [2]3 years ago

5 0

Answer:

The answer is:

when a nation's central bank makes an open market purchase of 20-year bonds, short-run effect is that the quantity of money in circulation increases, interest rates are low because the nation's commercial banks have more money to lend. Households and businesses are motivated to borrow money because of low rates

Explanation:

This is a monetary tool - open-market operation which is a situation in which when the central bank purchases securities inorder to increase the money supply and sells securities to decrease the money supply.

So when a nation's central bank makes an open market purchase of 20-year bonds, short-run effect is that the quantity of money in circulation increases, interest rates are low because the nation's commercial banks have more money to lend. Households and businesses are motivated to borrow money because of low rates.

This is usually done to stimulate the economy i.e to stop the economy from slowing down.

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3 years ago

An educational institution that sells shares to investors to make money

rodikova [14]

Incomplete question. Hence, In answered from a general economic perspective.

Answer:

<u>is having an IPO</u>

Explanation:

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3 years ago

The aggregate demand curve shows a _____ relationship between _____ and _____ at a given spending growth.

rewona [7]

The aggregate demand curve shows a relationship between aggregate price level and demand at the given spending growth.

<h3>What is demand?</h3>

Demand is explained as the requirement of a certain product in the market, usually this demand is varied if the prices are changed and the demand also is impacted by the supply.

If the prices are high it is highly likely that the demand of that product will reduce if the product is not a necessity.

If the prices are lower the demand for the product will increase.

Learn more about demand and supply at brainly.com/question/27305760

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2 years ago

If a $100 drop in the price of a $10,000 car resulted in an increase in the quantity of cars purchased from 100 to 110 and a $10

kati45 [8]

Answer:

Option C

Explanation:

f a $100 drop in the price of a $10,000 car resulted in an increase in the quantity of cars purchased from 100 to 110 and a $100 drop in the price of a $1,000 vacation rental resulted in an increase in the quantity of weekly vacation homes rented from 100 to 110, the price elasticity of demand the same for both the car and the vacation rental.

The elasticity remains unchanged because the percentage change in price and percentage change in quantity are tne same in both cases.

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3 years ago