What happens to money supply in open market bond purchases
Explain what happens to the money supply, interest rates, investment spending and GDP when the Fed makes open market bond purchases, on the one hand, and when it makes open market bond sales, on the other hand.
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Green Grass Incorporated is a distributor of golf balls. Garry's Golf Supplies is a local retail outlet which sells golf balls. Garry's purchases the golf balls from Green Grass Incorporated at $0.75 per ball
Explain what happens to the money supply, interest rates, investment spending and GDP when the Fed makes open market bond purchases, on the one hand.
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Welch issues bonds dated January 1, 2011, with a par value of $250,000. The bonds' annual contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of iss
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