Question

(current events) did the $80 billion buy the feds made in march 2020 for quantitative easing...

(current events) did the $80 billion buy the feds made in march 2020 for quantitative easing have any effect on the money supply ?
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Yes, this will increase the money supply in the market by the actual amount and the money multiplier that is because of the fractional reserve banking in the US, as the Fed is buying bonds in the market and that will increase the reserves of the banks and at a higher reserve banks will be lending more leading to higher money supply.

Add a comment
Know the answer?
Add Answer to:
(current events) did the $80 billion buy the feds made in march 2020 for quantitative easing...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • During lecture, we discussed Quantitative Easing, or the FEDs untraditional monetary policy in response to the...

    During lecture, we discussed Quantitative Easing, or the FEDs untraditional monetary policy in response to the housing crisis, and the historical implications of inverted yield curves. Which of the following statements is (are) FALSE: 1. US treasuries were downgraded by the credit rating agencies as a result of QE II. Increasing the money supply was the only action the FED took to stabilize the economy III. Since the yield curve inverted in December of 2018, the SP 500 has not...

  • Evita accepts an offer of employment made by Quality Lawyers Pty Ltd (Quality) to be their...

    Evita accepts an offer of employment made by Quality Lawyers Pty Ltd (Quality) to be their new marketing manager. On 1 January 2020 Quality made an interest free loan of $900,000 to Evita. Evita used the $900,000 to buy Rio Tinto Shares. On 1 March 2020 Evita’s employer told her she did not have to repay $500,000 of the loan. Quality is not entitled to claim the input tax credit for GST purposes. Required: Advise Quality of the fringe benefits...

  • A high school science teacher decided to give a series of lectures on current events. To...

    A high school science teacher decided to give a series of lectures on current events. To determine if the lectures had any effect on awareness of current events, an exam was given to the class before the lectures, and a similar exam was given after the lectures. The scores follow. Use a 0.1 level of significance to test the claim that the lectures made no difference against the claim that the lectures did make some difference (one way or the...

  • A high school science teacher decided to give a series of lectures on current events. To determine if the lectures had any effect on awareness of current events, an exam was given to the class before...

    A high school science teacher decided to give a series of lectures on current events. To determine if the lectures had any effect on awareness of current events, an exam was given to the class before the lectures, and a similar exam was given after the lectures. The scores follow. Use a 0.05 level of significance to test the claim that the lectures made no difference against the claim that the lectures did make some difference (one way or the...

  • FISCAL POLICY IN THEORY: March, 2020: we are on the verge of Congress and the President...

    FISCAL POLICY IN THEORY: March, 2020: we are on the verge of Congress and the President passing legislation that will empower the federal government to spend an unprecedented amount of EXTRA money not seen since World War 2 ---- in order to address the pandemic but also to help cushion the blow financially of perhaps ten or twenty million Americans --- or more --- losing their jobs, and thus suffering a drop in income. The scale of the 2020 recession...

  • Question 1 (Marks: 10) Isomin Ltd has a year-end date of 31 March 2021. They have...

    Question 1 (Marks: 10) Isomin Ltd has a year-end date of 31 March 2021. They have been in the business of textile design and production for fifteen years and are well respected in their industry. Before the final financial statements were authorised for issue on 31 May 2021, but after the reporting date, the following situations arose: (3) Q.1.1 The government announced a change to the tax law which will have a significant effect on the value of current tax...

  • 1. The US retail sales amounted to $4.31 billion in 2012. What did retailers sell in 2018 if the ...

    1. The US retail sales amounted to $4.31 billion in 2012. What did retailers sell in 2018 if the average annual rise in sales was 2.58%? (.5 points) 2. The European money supply M1 rose from 1,982 billion euros in January 2000 to 8,293 billion euros in January 2019. What was the average growth rate in that 19-year period (compounded annually)? (1.5 points) 3. In January 2002 the Russian unemployment was 6.74 million persons, and in January 2019 it was...

  • Church Company completes these transactions and events during March of the current year (terms for all...

    Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, n/30). Mar. 1 Purchased $43,600 of merchandise from Van Industries, invoice dated March 1, terms 2/15, n/30. 2 Sold merchandise on credit to Min Cho, Invoice No. 854, for $16,800 (cost is $8,400). 3 (a) Purchased $1,230 of office supplies on credit from Gabel Company, invoice dated March 3, terms n/10 EOM. 3 (b) Sold merchandise on credit to...

  • QUESTION 10 Consider the monthly data, including the estimates for March 2020, and the information in...

    QUESTION 10 Consider the monthly data, including the estimates for March 2020, and the information in the articles. Which of the following is the best analysis of and prediction for the money market in the U.S. economy for the next few months?   a. Shortages are causing panic buying by households, which has increased money demand. Lenders are increasing their lending to keep up with the needs of households and businesses. Money demand is increasing more than money supply. b. Shortages...

  • Church Company completes these transactions and events during March of the current year (terms for all...

    Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 1/10, n/30). Mar. Nm mo 12 1 Purchased $33,000 of merchandise from Van Industries, invoice dated March 1, terms 1/15, n/30. 2 Sold merchandise on credit to Min Cho, Invoice No. 854, for $13,200 (cost is $6,600). 3 (a) Purchased $990 of office supplies on credit from Gabel Company, invoice dated March 3, terms n/10 EOM. 3 (b) Sold merchandise...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT