What will be the repercussions of such an action by the fed

Assignment Help Econometrics
Reference no: EM13242531

Suppose the Fed has initiated an expansionary monetary policy by using $25 billion in newly printed money to buy government bonds from bond holders (the public). What will be the repercussions of such an action by the Fed with regard to the following:

1. The interest rate (is interest rate expected to increase or decrease?)

2. Bond holders (are bond holders expected to buy or sell bonds?)

3. Borrowers (are borrowers expected to borrow more or less?)

Reference no: EM13242531

Questions Cloud

How long does the satellite take to complete one orbit : What is the tangential velocity of a satellite in a circular orbit 300km above the surface of the Earth, How long does the satellite take to complete one orbit
Payments of principal over the life of the bonds : • How much is debt service funds for payments of principal over the life of the bonds?
Define the standard molar enthalpy of formation of n2o : Which of the following chemical equations corresponds to the standard molar enthalpy of formation of N2O
Archbishop desmond tutu is best known for : Archbishop Desmond Tutu is best known for
What will be the repercussions of such an action by the fed : Suppose the Fed has initiated an expansionary monetary policy by using $25 billion in newly printed money to buy government bonds from bond holders (the public). What will be the repercussions of such an action by the Fed
Accurately characterizes sports in the 1920''s : Which of the following statements most accurately characterizes sports in the 1920's?
Define notation to represent the electrochemical cells : Use line notation to represent the electrochemical cells for each of the following overall redox reactions
Show what happens to each banks deposit liabilities : Suppose Al has a checking account in Bank A, and Bob has a checking account in Bank B. Banks A and B each have $100,000 in deposit liabilities and $30,000 in reserves, and the required reserve ratio is 20%.
Explain the half-life of nuclide a : A person is exposed for three days to identical amounts of two different nuclides that emit positrons of roughly equal energy. The half-life of nuclide A is 18.5 days and the half-life of nuclide B is 255 days.

Reviews

Write a Review

Econometrics Questions & Answers

  What is the amount that must be donated each year

an alumnus of West Virginia University wishes to start an endowment that will provide scholarship money of $40,000 per year beginning in year 5 and continuing indefinitely. The donor plans to give money now and for each of the next 2 years.

  What is the value of future amount at eoy

A future amount of $150,000 is to be accumulated through annual payments, A, over 20 years. The last payment of A occurs simultaneously with the future amount at EOY 20. If the interest rate is 9% per year, What is the value of A?

  Calculate the output of each firm

A duopoly faces a market demand of p=120-q. Firm 1 has a constant marginal cost of MC1=20. Firm 2's constant marginal cost is MC2=40. Calculate the output of each firm, market output, and price if there is a Stackelberg equilibrium with firm 1 as t..

  Determine what is the expected value for each project

To evaluate the two projects, you decide to use the company's weighted average cost of capital (WACC) for the less risky project (12 percent) and the WACC plus two points (14 percent) for the more risky project.

  What is a plausible explanation for the state of affairs

According to the neo-classical theory of wage setting, discrimination should be gradually weeded out of the labour market. Explain why this should be the case according to that theory. Discrimination, however, seems to endure.

  Creating regression graph

A corporation is interested in knowing which potential sales are next year if you use $20,000 in advertising expenses. The corporation uses the data from previous years to make its sales forecast.

  How to verify all of the prices and quantities

questions are even asking. Would you be able to explain what they are asking as well as provide me with a solution I'm more interested in LEARNING this than just getting the answer, so I really need help with the explanation of how you come up wit..

  Determine the value of the loan if the nominal rate given

monthly payments on a loan is $1000 for the next 10 years. Determine the value of the loan if the nominal rate 6% compounded monthly. if we want to pay the loan in 50 months what is the monthly payment

  Calculate manufacturing cost and selling price for turbine

a manufacturer of small hydraulic turbine has the annual cost data given below. calculate the manufacturing cost and the selling price for turbine. raw material and components cost $2150000 otal annual sales: 60 unit profit margin:15% plant overhead:..

  How many robots should the firm rent

In what kind of market structure does the firm sell its output? How can you tell In what kind of market structure does the firm rent robots How can you tell Calculate the marginal product and the value of the marginal product for each additional robo..

  What is the amount of profit that jonathan can maximize

Jonathan (a monopolist) maximizes profit by producing a quantity of 800 pillows where marginal cost is $2 and average cost is $4. Consumers are willing to pay as high as $10 per pillow when the quantity supplied is 800 pillows.

  Why a concerned congress votes to impose a price floor

Frisbee manufacturers persuade the government that Frisbee production improves scientists' understanding of aerodynamics and thus is important for national security. A concerned Congress votes to impose a price floor $2 above the equilibrium price..

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