1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Eddi Din [679]
3 years ago
13

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.

You might be interested in
Why do market fail? <br> A) merit good <br> B) storage<br> C) misusing the powers
Nimfa-mama [501]
The answer is C because you can't misuse your powers in business
8 0
3 years ago
All of the following should generally be included as taxable income on Schedule 1 (Form 1040), line 21, EXCEPT: Reimbursement re
Lapatulllka [165]

Answer:

Answer is Option 2: Life insurance proceeds received after the death of a spouse.

Explanation:

Life insurance proceeds are generally not taxable. They are paid after insurer's death. It would only be taxable if the policy was given to the spouse for a price. Even if proceeds are paid under accidental policy or health insurance policy, they are not taxable. Proceeds are always paid as a lump sum amount and not in installments.

Other given options, 1, 3 and 4 like reimbursement for medical expenses, taxable portion of a disaster relief payment and dividends exceeding net premiums paid are taxable.

7 0
3 years ago
Who is demonstrating entrepreneurship? for bca in high school
ollegr [7]
Ummmmmmmmmmmmmmmmmmmmmmmmmmmmmmm
4 0
3 years ago
What is one benefit of declaring bankruptcy?
Naddik [55]
O A. It removes debts that a person or business cannot repay.
7 0
3 years ago
Read 2 more answers
A map made to show the distribution of one or more phenomenon is a(n) ________ map.
Vaselesa [24]
<span>A map made to show the distribution of one or more phenomenon is a THEMATIC map. A thematic map emphasizes a distinct characteristic over the map, showing which regions are more susceptible to it.</span>
7 0
3 years ago
Other questions:
  • A merger between a company and one of its suppliers is known as a _______ merger.
    14·2 answers
  • A nurse is caring for an older adult client with advanced Parkinson's disease. Which client statement about advance directives i
    8·1 answer
  • How is a line of credit similar to a credit card?
    10·2 answers
  • On November 1, Year 2, Smith Co. contracted to dispose of an industry segment on February 28, Year 3. Throughout Year 2, the seg
    9·1 answer
  • On January 1, 2016, Hackman Corporation issued $1,400,000 face value 12% bonds dated January 1, 2016, for $1,423,060. The bonds
    12·1 answer
  • On April 1, 2020, Clare Barry received a 5%, $600,000 note from John Edwards, a customer. The note is due on March 31, 2021. Cla
    11·2 answers
  • Instead of borrowing to buy something, pay cash by using a(n).
    10·2 answers
  • What is the verb in this sentence grandma served us hot pancakes in the morning
    10·1 answer
  • Soda companies are worried because sales have fallen flat. People today are more concerned about their sugar intake and want to
    5·2 answers
  • Which of the following correctly describes a non-price competitive strategy based on product differentiation? A. Market penetrat
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!