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What else can I help you with?
Would cause a decrease in the supply of money?
raising of interest rates
What change in monetary policy could eventually cause overborrowing and overinvestment?
a decrease in the money supply
What effect does an increase in the money supply have on inflation?
An increase in the money supply shifts the money supply curve to the right. If you look on your graph, you will see that an increase in money supply will cause the interest rate to decrease. Here's why: Fed increases money supply-->excess supply of money at the current interest rate -->people buy bonds to get rid of their excess money-->increase in the prices of bonds --> decrease in the interest rate.
What factors contribute to the decrease of both M1 and M2 money supplies?
Factors that contribute to the decrease of both M1 and M2 money supplies include a decrease in bank lending, a decrease in consumer spending, a decrease in government spending, and an increase in the demand for cash holdings.
What does it mean by contract the money supply?
It means to decrease, or lower, the money supply. EXAMPLE: The feds sold treasury bonds and bills in order to contract (decrease) money supply.
Does the issuance of a stock dividend increase the company's assets?
No. Dividend payout essentially means that the company pays money to all its shareholders and hence its assets will effectively decrease.
Would cause a decrease in the supply of money?
raising of interest rates
The Federal reserve can cause interest on mortgages to decrease by?
taking money
What change in monetary policy could eventually cause overborrowing and overinvestment?
a decrease in the money supply
Who are the parties involved in bond issuance?
The parties involved in bond issuance typically include the issuer (company or government entity borrowing the money), underwriter (investment bank facilitating the issuance), investors (those purchasing the bonds), and sometimes a trustee (to ensure terms of the bond are met).
What effect does an increase in the money supply have on inflation?
An increase in the money supply shifts the money supply curve to the right. If you look on your graph, you will see that an increase in money supply will cause the interest rate to decrease. Here's why: Fed increases money supply-->excess supply of money at the current interest rate -->people buy bonds to get rid of their excess money-->increase in the prices of bonds --> decrease in the interest rate.
Why did populist support limits on immigration?
To decrease competition for jobs
How does a government slow inflation?
One way is to decrease the prices of general goods. This will cause disinflation, but not deflation. Another way is to stop printing money.
When I buy stock, where does the money go?
When you buy stock, the money you pay goes to the seller of the stock, which could be another investor or the company itself if it's a new issuance.
What factors contribute to the decrease of both M1 and M2 money supplies?
Factors that contribute to the decrease of both M1 and M2 money supplies include a decrease in bank lending, a decrease in consumer spending, a decrease in government spending, and an increase in the demand for cash holdings.
What will happen if people give money to the gods?
Black money can decrease...
What does it mean by contract the money supply?
It means to decrease, or lower, the money supply. EXAMPLE: The feds sold treasury bonds and bills in order to contract (decrease) money supply.
