B. Decreases
if demand goes down, nobody is buying anything, so the need to produce/manufacture is down
U. s. treasury securities are considered risk-free because they have minimal if any, default risk.
Given that the U.S. government stands behind them with its full faith and credit, Treasury securities are among the safest investments. According to the maturity period, Treasury securities are separated into three major groups:
- Treasury Notes
- Treasury Bonds
- Treasury Bills
You can buy any of these Treasury securities directly from the US government, through a bank, or through a broker. Despite being low-risk, treasuries do have some risks, such as being affected by inflation and interest rate changes. Treasuries have low returns because they are a secure investment. Federal taxes must be paid on interest received on Treasury securities.
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Answer:
b
Explanation:
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Answer: a. Inflation
Explanation:
Inflation refers to the general rise in prices of items in an economy in a certain period of time. Inflation essentially erodes the value of the domestic currency of the economy in question.
Central Banks like the Fed can use Monetary policy to influence inflation. In this case they reduced the amount of money in the economy by reducing bank loans. This will ensure that people cannot spend too much which would increase demand and therefore increase prices.
By doing this, they have limited the likelihood of inflation.
Answer:
A. Is self regulating
Explanation:
The fundamental theory of the classical economy is that the market economy is self regulating. The classical economists believe that an economy is always capable of achieving real GDP, that is GDP when resources are fully employed. And that, time to time, when GDP falls below or exceed the real GDP, the market economy has self-adjustment mechanisms to bring it back to the real GDP level. Classical economists believes in self regulating democracies and capitalistic market developments.
