Treasury of sold bonds to finance the budget deficit

Assignment Help Business Economics
Reference no: EM131253257

In the Republic of? Ragu, the currency is the rag. During? 2009, the Treasury of Ragu sold bonds to finance the Ragu budget deficit. In? all, the Treasury sold? 50,000 10-year bonds with a face value of 100 rags each. The total deficit was 5 million rags.? Further, assume that the Ragu Central Bank reserve requirement was 20 percent and that in the same? year, the bank bought? 500,000 rags' worth of outstanding bonds on the open market.? Finally, assume that all of the Ragu debt is held by either the private sector? (the public) or the central bank. a. The combined effect of the Treasury sale and the central bank purchase on the total Ragu debt outstanding is a change in overall debt of (5,000,000 - 0 - 50,000,000 - 4,500,000 - 2,500,000) rags? and, in? particular, the debt held by the private sector increases by (5,000,000 4,500,000 -5,000,000 0 -4,500,000 500,000) rags.

Reference no: EM131253257

Questions Cloud

What is the equilibrium level of gdp : Consider the following model for the economy c=100+0.75(y-taxes) and I= 200, G= 50 and taxes+10+.16y. export=15 and imports= 5+.05y. what is the equilibrium level of GDP? Suppose the level of investment is reduced by 50. What is the equilibrium level..
Calculate the time necessary to reduce the population size : For a population of bacteria with an initial biomass of 100 mg/L and a kd = 0.4 day-1 , calculate the time necessary to reduce the population size to 10 mg/L.
After the north american free trade agreement : After the North American Free Trade Agreement (NAFTA) was signed, trade restrictions between Canada, the United States, and Mexico were eased and cross-border trade increased. What predictions would the Heckscher-Ohlin model make concerning the chang..
Stage for computer innovations today : Discuss the challenges faced by the early information technology innovators, their motivations for creating their solutions, and ways they set the stage for computer innovations today.
Treasury of sold bonds to finance the budget deficit : In the Republic of? Ragu, the currency is the rag. During? 2009, the Treasury of Ragu sold bonds to finance the Ragu budget deficit. In? all, the Treasury sold? 50,000 10-year bonds with a face value of 100 rags each.
Calculate the specific growth rate of the population : What percentage of the maximum growth rate for the exponentially growing population size would this be?
Putting a high voltage power transmission line : Imagine that a project involves putting a high voltage power transmission line near residential property. Discuss how you might predict and monetize its impact on residents.
Sophisticated engagement with social justice : Issues may include but are not limited to the organisational cultures, training and development, performance management, retrenchment, and retention. Fundamental to your piece ought to be a sophisticated engagement with social justice
Advantages and disadvantages of the information system : In a 1,500-1,750-word e-mail response, provide your opinions about an information system such as this. Be sure to answer the following questions: What would the advantages and disadvantages of the information system be? Identify the type of informa..

Reviews

Write a Review

Business Economics Questions & Answers

  Multiplier effect

Draw and show the change in the PPF when an outbreak of avian flu sickens millions of agricultural and industrial workers.

  Plummeting home prices generated a substantial reduction

Between early 2008 and the beginning of 2009, a gradual stock-market downturn and plummeting home prices generated a substantial reduction in U.S. household wealth that induced most U.S. residents to reduce their planned real spending at any given pr..

  Geometric gradient series cash flow

Calculate the present worth of the following geometric gradient series cash flow: Annual interest Rate =7.07 %, Annual cash flow increases 20% each year, The first year value is $58 and the series is 8 yrs long. Present your answer with 2 decimal pla..

  Difference between microeconomics and macroeconomics

What is the difference between Microeconomics and Macroeconomics? What are an example of each of them? Explain in detail

  How can an oligopolist violate antitrust laws

In July, the Department of Justice opened an investigation related to possible collusion and price fixing. What created the suspicion of collusion? Also research this case and share some details. What is currently happening? The Airline industry is n..

  Illustrate what steps would you as an auditor take to assure

illustrate what steps would you as an auditor take to assure you have minimized the potential for audit risk making a positive evaluation of the firm's financial status when it is in fact negative.

  Classified as what type of unemployment

Unemployment according to Marx could be classified as what type of unemployment?

  Illustrate what advice would you offer kyle also chad

Illustrate what advice would you offer Kyle also Chad when they are ready to present their business plan to a banker.

  Opportunity costs of playing tennis

They could each decide to work a few extra hours on Saturday and earn more income. But they choose to play tennis or to relax around the house.

  How do segmentation of global financial markets

How do segmentation of global financial markets, government incentives to attract direct foreign investment (DFI) and variation in national tax rates allow multinational corporations to lower their cost of capital compared to single country corporati..

  Difference in the payoffs to productive characteristics

Where W is the hourly wage for men and females, EDUC is years of education, EXP is total years of experience, and TEN is tenure with ones current employer. What fraction of the gender wage gap is explained by differences in the production characteris..

  Describe the four successful round of venture financing

Describe the four successful round of venture financing (Through D) achieved by spatial Technology in terms of sources also amounts.

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