If the government spends more money and finances it with additional borrowing, we would expect bond...
Why would we see the prices on U.S. government bonds suddenly rise? Multiple Choice Bond prices can't rise or fall they are stable. If we had a sudden explosion of good economic news like lower unemployment, a booming stock market that returned average rates of return of 15 percent, or the signing of new peace treaties (i.e. Israel & Iran), then we would see bonds prices rise on U.S. government bonds. They would rise if there was suddenly lots of...
According to the Classical model, if government suddenly spends more for space travel programs, this will cause Aggregate Demand to fall, causing prices to fall, but no change in long-run GDP Aggregate Demand to rise, causing prices to increase, but no change in long-run GDP. Aggregate Demand to fall, causing prices to fall and long-run GDP to fall Aggregate Demand to rise, causing prices to rise and long-run GDP to rise.
Your financial investments consist of US government bonds maturing in 10 years and shares in a start-up company doing research in pharmaceuticals. How would you expect each of the following news items to affect the value of your assets a. Interest rates of newly issued government bonds rise Stock and bond prices will rise O Stock and bond prices will all Stock prices will all and bond prices could remain unchanged or Stock prices will fall O Stock prices will...
Why would we see the prices on US government bonds suddenly rise? Multiple Choice Bond prices can only rise if the US government pays more interest on these investments They would rise if there was suddenly lots of bad economics news like higher unemployment an increase in natural disasters like explding volcanoes, or the start of new wars le China attacks Taiwan), then we would see bond prices rise on US government bonds If we had a sudden explosion of...
1. When the central bank decreases the money supply, we expect interest rates a. and stock prices to rise.b. and stock prices to fall.c. to rise and stock prices to fall.d. to fall and stock prices to rise.
explanation needed!!
8) If net taxes fall by $80 billion, we would expect A) household saving to rise by $80 billion. B) household saving to fall by more than $80 billion. C) the government deficit to fall by $80 billion. D) household saving to rise by less than $80 billion,
suppose there is an increase in input prices. we would expect supply to decrease to increase could increase or decrease to remain unchanged
TANe 41. What can cause the asset demand for money curve to shift to the left? A). If the interest rate increases. C). If nominal GDP increases E). If the price level increases B). If the interest rate decresases. D). If nominal GDP decreases 42, Which of the following is true regarding the quantity of asset demand for money? A) It varies directly with the level of nominal GDP. B) It varies directly with the rate of interest C) It...
What impact would borrowing an additional $20,000 to buy more equipment have on each of the ratios in (a) above, assuming that no changes are expected on the income statement and balance sheet? 1. Current ratio 2. Debt to assets 3. Gross profit rate 4. Profit margin 5. Return on assets 6, Return on common stockholders equity SUBNIT ANSWER /3V2019
Explain what we would expect to happen to the money supply if the Federal Reserve buys $120 billion worth of U. S. Government bonds while banks increase their discount loans by $40 billion. Be as specific as possible in your answer given the information provided.