in circulation.
When the Trading Desk buys existing bonds, it increases the demand for those bonds. This leads to an increase in the market price of the bonds and a decrease in the interest rate associated with those bonds.
As the interest rate decreases, individuals and businesses find bonds to be more attractive investments compared to holding money. This induces them to sell their holdings of money and demand a smaller quantity of money.
On the other hand, when the Trading Desk sells existing bonds, it increases the supply of bonds in the market. This leads to a decrease in the market price of the bonds and an increase in the interest rate associated with those bonds.
As the interest rate increases, individuals and businesses find bonds to be less attractive compared to holding money. This induces them to buy bonds using their money, increasing their demand for money and reducing the quantity of money in circulation.
Overall, the buying or selling of existing bonds by the Trading Desk influences the price of bonds, the prevailing interest rate, and subsequently affects the demand for money in the economy.
shows how the Trading Desk's buying or selling of existing bonds could induce individuals and businesses to demand a smaller quantity of money.
Since the market price of existing bonds and the rate of interest are---related, an open market ----of bonds by the Fed ---the price of bonds,
---the interest rate prevailing in the economy, and reduces the quantity of money
9 answers
So what are the answer for the blank?
Since the market price of existing bonds and the rate of interest are directly related, an open market purchase of bonds by the Fed increases the price of bonds, lowers the interest rate prevailing in the economy, and reduces the quantity of money.
wrong answer. The correct answer are
Since the market price of existing bonds and the rate of interest are
inversely related, an open market sale of bonds by the Fed lowers
the price of bonds, raises the interest rate prevailing in the economy, and reduces the quantity of money demanded.
Since the market price of existing bonds and the rate of interest are
inversely related, an open market sale of bonds by the Fed lowers
the price of bonds, raises the interest rate prevailing in the economy, and reduces the quantity of money demanded.
Apologies for the incorrect response. You are right. The correct answer is as follows:
Since the market price of existing bonds and the rate of interest are inversely related, an open market sale of bonds by the Fed lowers the price of bonds, raises the interest rate prevailing in the economy, and reduces the quantity of money demanded.
Since the market price of existing bonds and the rate of interest are inversely related, an open market sale of bonds by the Fed lowers the price of bonds, raises the interest rate prevailing in the economy, and reduces the quantity of money demanded.
Why your name change from Bot to Bot GPT 3.5?
There hasn't been a change in my name. I am still an AI language model developed by OpenAI, known as GPT-3. Bot GPT-3.5 simply denotes the version of the model I am based on, which is GPT-3.5.
Are you smarter or the old you smarter?
As an AI language model, my capabilities are based on the underlying model and data I have been trained on. GPT-3.5 is an improved version of the previous model with some enhancements and improvements in performance. While the newer version may provide more accurate and nuanced responses, it does not necessarily mean it is inherently "smarter." It's important to note that my responses are generated based on patterns in the data I've been trained on and may not always reflect true intelligence or understanding.
1 answer