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3 years ago

If the FOMC orders the open market desk to sell government securities,

Business

1 answer:

Delicious77 [7]3 years ago

5 0

Answer: Option(a) is correct.

Explanation:

FOMC (Fed open market committee) is monetary policy making body of United states who implements various money supply related policy.

Here, FOMC orders the open market desk to sell government securities, which lowers the money supply and increases the interest rate.

Fed use this monetary policy instrument to control the money supply in the economy.

This effect also shown in a diagram.

In the IS-LM diagram, it was shown that there is a shift in the LM curve leftwards due to decrease in the money supply. So, this decrease in the money supply raises the interest rate from i to i' and decreases output from Y to Y'.

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4 years ago

An increase in the supply of money will lead to ____ in equilibrium real GDP and ____ in equilibrium price level. a.a decreases;

kvasek [131]

When borrowing money becomes easier, consumption and lending (and borrowing) rates tend to rise.

Higher rates of consumption, lending, and borrowing can be linked to a rise in an economy's overall output, expenditure, and, presumably, GDP in the near run.

For a given price level and output, an increase in the money supply lowers the interest rate.

<h3>What Factors Influence Money Supply?</h3>

The most important determinant of the money supply is the Federal Reserve policy.

The Federal Reserve influences the money supply via changing bank deposits, which are its most essential component. This is how it goes.

Depository institutions (commercial banks and other financial institutions) are required by the Federal Reserve to retain a portion of their deposit liabilities as reserves.

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2 years ago

With the ___________ inventory control system, producers hold only the amount of materials and parts that they need for a short

OleMash [197]

The answer is energy inventory

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3 years ago

"fixed costs that do not differ between two alternatives are"

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Fixed costs are costs of the company that do not depend of the business activities of the company. This means that they <span> do not change with an increase or decrease in the amount of goods or services produced or sold.</span>
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3 years ago

When you develop a major component on an outline into subpoints, you must have at least two subpoints. a. True b. False

AleksAgata [21]

<h2>The given statement is true.</h2>

Explanation:

Points and sub points help the readers to,

Understand it clear
Better clarity
Reader-friendly

As per the given statement in the question, it is mandatory to have two or more points as sub points.

Reason:

We go for elaborating with sub points for the reason that

it needs more briefing in points
Need to talk variety of details
To convey depth of content in simple way
Depth indicates that the pointers will be more than 2 items

So if the pointers are lesser than two, then it is enough the content is delivered as a single statement than in points.

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3 years ago

If the FOMC orders the open market desk to sell government​ securities,

If the FOMC orders the open market desk to sell government securities,