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The government sells a new batch of Treasury bonds.
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Which action is most likely to result in a decrease in money supply?
A contractionary monetary policy or a contractionary fiscal policy.
If A decrease in price of a product will result in?
increase in demand and decrease in supply.
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.
What is the Effectof a decrease in money supply?
Deflation
If the fed increases the money supply what will happen to interest rates?
when money supply is increased, interest rates decrease
Which action is most likely to result in a decrease in money supply?
A contractionary monetary policy or a contractionary fiscal policy.
If A decrease in price of a product will result in?
increase in demand and decrease in supply.
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.
The cargo container improved distribution by introducing what methods into the shipping industry?
Standardization
What is the Effectof a decrease in money supply?
Deflation
Because immigration can result in an increase in the supply of labor immigration can result in what?
A general decrease in wages. - Apex
If the fed increases the money supply what will happen to interest rates?
when money supply is increased, interest rates decrease
What immigration can result in an increase in the supply of labor immigration can result in?
A general decrease in wages. - Apex
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 is a fiscal policy designed to do?
Increase or decrease the money supply
An increase in the money supply is likely to decrease?
the prime rate
Tightening the money supply causes interest rates to do what?
Decrease
