Sells government bonds will short-term interest rates rise

Assignment Help Macroeconomics
Reference no: EM1337806

Effect on short-term interest rates of Fed selling bonds

If the Federal Reserve sells government bonds, will short-term interest rates increase or decrease? Explain how this will affect aggregate demand and the rate of growth of the economy.

 

Reference no: EM1337806

Questions Cloud

Elucidate why at one point in time a keynesian approach : Elucidate why, at one point in time, a Keynesian approach to managing the macro-economy might be appropriate while, at another point in time, a classical approach might be more likely to produce a superior outcome.
Negative effect of aiming for perfection : Perhaps there is a negative effect of aiming for PERFECTION rather that just aiming high.
Regarding international criminal court : Can the international criminal court (ICC) award reparations to victims?
Make a web page called "game.html" : design a Web page called "game.html" and add a layer to it, which will be treated as an object, with an image for its contents. Add another image which will start the game when clicked on.
Sells government bonds will short-term interest rates rise : If the Federal Reserve sells government bonds, will short-term interest rates rise or fall. Explain how this will affect aggregate demand and the rate of growth of the economy.
Explain segmenting a market : Explain Segmenting a Market and To be useful and effective market segments should have five different characteristics.
Create an assessment model : Create an assessment model tailored to a company.
Cost function of the market requirement : Is cost often a function of the market requirements and can high quality is achieved at any cost point? Why or why not?
Division within roman citizen : What were the major divisions within the body of Roman citizens between 133 and 31 BC?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Assume the u.s. economy begins in long-run equilibrium

Assume the U.S. economy begins in long-run equilibrium. Concerns about global climate change cause the government to significantly restrict the production of electricity form fossil fuels.

  Assume that the economic news is not good

Assume that the economic news is not good and businesses become pessimistic about the future. How would this change in attitude affect the investment demand curve and the impact on real GDP.

  Illustrate what factors have contributed to increased income

Illustrate what factors have contributed to increased income inequality an economy along with an equitable income distribution may be efficient as well.

  Economists also businesses almost always compare costs

Economists also businesses almost always compare costs and benefits in their decision making.

  According to moderate growth your return rapid expansion

According to moderate growth your return will be 8 percent. If there is a rapid expansion, your portfolio will return 15 percent.

  Provide high domestic interest rates in next few years

Provide high domestic interest rates, what is the economic outlook for these Asian countries in the next few years.

  Illustrate toms price elasticity of demand demand curve look

Illustrate Toms price elasticity of demand also what does his demand curve look like (either verbally explain the shape of the demand curve

  Office building maintenance makes call for the stripping

Office building maintenance makes call for the stripping, waxing, and buffing of ceramic floor tiles. This work is often contracted out to office maintenance firms, and both technology.

  Finding slope of budget line and consumers mrs

Show the new utility maximizing bundle of gasoline and all other goods. What is the slope of the new budget line? What is the consumer's new MRS of all other goods for gasoline?

  Describe the core principle of the standard

Describe the core principle of the standard and whether or not you are in agreement with the proposed standard.

  Large numbers of low price producers started growing plants

Early in 2007, a survey of greenhouses indicated that the demand for houseplants was rising sharply. AT the same time, large numbers of low price producers started growing plants for sale. The overall result was a drop in the average price of hou..

  Explain how might knowing this affect

Explain how might knowing this affect you as the manager of a large firm.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd