If the central banks buys government bonds from the financial system, how does that affect the interest rates, and what does that mean about the money supply, why, explain

Q: If nominal GDP is $400, real GDP is $200, and the money supply is $100, then what is the price level…

A: A way of measuring the economic wellbeing of a nation, the GDP is the amalgamation of all the values…

Q: Explain, what kind of monetary policy can be used to fight against recession and depression.

A: The Fed is also known as central bank, which aims to promote economic stability by controlling the…

Q: If the Fed sells $100 million of U.S. government securities, what happens to the quantity of money?

A: Open Market Operation:-  To keep the amount of money in circulation under control, the Federal Bank…

Q: Suppose the fed doubles the growth rate of the quantity of money in the economy. The increase in…

A: According to the concept of money neutrality, the change in money supply lead to change only in…

Q: When the economy is in a recessionary mode, what will likely be the actions by the Federal Reserve…

A: Generally, recession is classified as a period of temporary decline of the economic activities.…

Q: When the price of slaves was quoted in cows and brass rods in Nigeria, which function of the money…

A: Answer: The money functions as a medium of exchange, store of value, unit of account, etc.  Here,…

Q: The monetary base increased by 20% during the contraction of 1929-1933, but the money supply fell by…

A: The monetary base increased by 20% during the contraction of 1929-1933, but the money supply fell by…

Q: The demand for money increases when the interest rate increases. Is it true or false?

A: Demand refers to the various quantities of goods that consumers are willing to buy at different…

Q: If in an economy bank rate is increased how will it affect the demand for credit? Explain

A: To prevent volatility, the basic goal of monetary policy is to maintain control over the money…

Q: What are the objectives of monetary policy? and what are the goals of monetary policy in harmony or…

A: Monetary policy is defined as the process by which central bank of the country and manage supply of…

Q: What are the tool's of monetary policy and what are the objectives of monetary policy ?

A: Monetary Policy aims at controlling the money supply in the economy. It involves adjusting the…

Q: The central bank decided to raise interest rates when it wanted to reduce aggregate demand to fight…

A: Introduction Central bank is the head bank of the country all the commercial bank and public sector…

Q: Feds put $23.5 trillion back into the market, which Went back into the rising bill stock market.…

A: 2007-2008 debt crisis is also known as subprime debt crisis which is caused by large amount of…

Q: Q5. If the central bank sells government securities from the private sector-money markets, other…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: How does the Central Bank spend it's

A: National banks influence the amount of cash available for use by trading government protections…

Q: Which ones of the above economic factors will increase money supply? Which ones of the above…

A: The economic factors that will increase the money supply: c. Expected inflation - If there is…

Q: Explain how does monetary policy affect the economy and business activities?

A: The monetary policy is the central bank's policy of money supply where central bank influences the…

Q: If a central bank buys government securities from the private sector-money markets, leading to an…

A: Since you have posted a question with multiple subparts, we will solve the first three complete…

Q: The Federal Reserve helps determine interest rates for the entire economy.  Answer the following…

A: Note- Since you have posted a question with multiple sub-parts, we will solve first three-sub parts…

Q: what will happen to the interest rate vs quantity of money if the federal decides to decrease money…

A: The economies around the world tend to have many entities, which undertakes various economic, and…

Q: What are the tools the reserve bank is using in Australia to run a monetary policy?

A: There are four primary tools for the central bank of any country to have control in the money…

Q: Who are the members of the Monetary Board?Please describe

A: The monetary board conducts monetary policies and regulates the money supply and level of inflation…

Q: Which is the most commonly used tool to influence the money supply?

A: Money supply refers to all the currency, coins and liquid cash in an economy at a given time period.…

Q: 7. Economic commentators have pointed out that demand for money in a developed country is projected…

A: Money Demand: - The demand for money is the individual's desire to keep their assets in the form of…

Q: When the Fed increased the monetary base between 2008 and 2014, which component of the monetary base…

A: The three components of the monetary base are vault cash, Fed reserve deposit and currency in…

Q: Explain how speculative demand for money, precautionary demand and transitionary demand affect the…

A: Money is anything that is socially accept for the exchange of goods and services. It refers to…

Q: If the Fed wants to lower the interest rate, what should they do with the money supply? What tools…

A: Both Central Bank and Central Government have different tools which will help to control the money…

Q: Describe how the Federal Reserve can use its authority to stimulate the economy. How does the Fed…

A: 1. The Federal Reserve's two legal duties in the United States are to establish a consistent and…

Q: Who is the one responsible in implementing monetary policy and what is the consideration in their…

A: Monetary policy is a tool used by a nation's central bank to control the overall money supply and…

Q: What kind of monetary policy rule did Milton Friedman advocate? Select one: a. Long-run economic…

A: According to Milton Friedman, the money supply rate should be equal to the real GDP growth rate.

Q: why a central bank be independent from government

A: The monetary policy is the policy of the central bank regarding the money supply and interest rate…

Q: If the current interest rate is 5 percent, what will be the equilibrium interest rate if the money…

A: * SOLUTION :-

Q: What are the goals of monetary policy? How have the goals changed since August 2020? Describe how…

A: The monetary arrangement is a bunch of apparatuses that a nation's central bank has access to…

Q: What’s the monetary policy? Why the Fed implements the monetary policy?

A: What’s the monetary policy? Answer: Monetary policy is a tool to improve the economic situation…

Q: If the Fed buys $5 million of bonds from the First National Bank, what happens to reserves and the…

A: The Fed buys bonds from the First National Bank increases reserves by $5 million and reduces…

Q: What effect would the discovery of gold that fuels inflation have on the money market? Illustrate…

A: In the mentioned question we are asked about the effects of the discovery of gold on fuels inflation…