economics

Will buying bonds decrease the money supply?

  1. 👍 0
  2. 👎 0
  3. 👁 47
asked by Tabby
  1. Depends on who is buying the bonds. If the Fed, then no, if the public, then yes.

    1. 👍 0
    2. 👎 0

Respond to this Question

First Name

Your Response

Similar Questions

  1. Marcoeconomics

    According to the formula, Bond price= y/r so bond price has a inverse relationship with interest rate.i.e. interest rate increases, bond price decreases. But why does it contradict with this demand-supply anysis: r(interest rate

    asked by David on February 15, 2009
  2. Macroeconomics

    If investors sell their stocks and increase their money holdings due to a bad economy then A. demand for loanable funds will increase. B. demand for loanable funds will decrease. C. supply of loanable funds will increase. D.

    asked by Sara on May 20, 2015
  3. Civics

    Pedro is thinking about buying U.S. savings bonds. However, there is a financial institution controlled by the government that may actively discourage Pedro from buying bonds. How and why would such a financial institution do

    asked by A on May 19, 2016
  4. Macroeconomics,

    List and explain the three tools used by the Fed to manipulate the supply of money. In each case show how the money supply can increase/decrease.

    asked by mercedes on June 21, 2010
  5. Civics

    Suppose the Federal Reserve raises interest rates. Which of the following predicts the most likely results? A. The money supply will decrease, meaning that banks will give fewer loans and prices for goods and services will fall.

    asked by Student on April 16, 2015
  6. Civics

    Suppose the Federal Reserve raises interest rates. Which of the following predicts the most likely results? A. The money supply will decrease, meaning that banks will give fewer loans and prices for goods and services will fall.

    asked by Student on April 16, 2015
  7. macroeconomics

    The interest rate were zero under the old government.The GDP is $700 and at that time people kept a total of $120 in cash stored as well as %50 worth of bonds. However, under new government the interest rate has risen to 36%. On

    asked by sw on April 24, 2007
  8. Grad Economic

    If the real money demand is greater than the real money supply, interest rates must rise to reach equilibrium in the money market as institutions sell bonds to obtain more money.

    asked by jim on June 11, 2015
  9. math

    Loans to companies, cities, or states that usually pay a specified interest rate are called: A. stocks B. bonds C. mutual funds D. money markets it is B bonds Which of the following is NOT an advantage of buying mutual funds? A.

    asked by anonymous on January 10, 2012
  10. economics

    Am i right, just checking as too many wrong homework assignments at the start of this semester have messed up my grades If the required reserve ratio is 0.2, by how much could the money supply expand if the central bank purchased

    asked by jill on May 24, 2013

More Similar Questions