(Solution) 16. When The Market Outlook On A Country's Prospects For Economic Growth Becomes More Optimistic, What Is The Most Likely To Happen To The Prices Of | Snapessays.com


(Solution) 16. When the market outlook on a country's prospects for economic growth becomes more optimistic, what is the most likely to happen to the prices of


file below................................................................................................................................................................................................................................................................................16. When the market outlook on a country's prospects for economic growth becomes more opTmisTc, what is the most likely to happen to the prices of bonds and stocks?

 

17. When the Federal Reserve buys $1 million worth of government bonds,

 

a) Bond prices will likely go up and stock prices will go down.

 

b) Bond prices will likely go down and stock prices will go up.

 

c) Both bond and stock prices will likely go up.

 

d) Both bond and stock prices will likely go down.

 

a) the money supply increases by $1 million and the interest rates in the economy increase.

 

b) the money supply increases by more than $1 million and the interest rates in the economy decrease.

 

c) the money supply decreases by $1 million and the interest rates in the economy increase.

 

d) the money supply decreases by less than $1 million and the interest rates in the economy decrease.

 

18. Which of the following measures by the Federal Reserve would help ±ght in²aTon?

 

a) Increasing the amount of bank loans.

 

b) Decreasing the reserve raTo.

 

c) Selling government bonds.

 

d) Decreasing the discount rate.

 


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This question was answered on: May 23, 2022

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