expand icon
book The Economics of Money, Banking and Financial Markets 4th Edition by Frederic Mishkin cover

The Economics of Money, Banking and Financial Markets 4th Edition by Frederic Mishkin

النسخة 4الرقم المعياري الدولي: 978-0133859997
book The Economics of Money, Banking and Financial Markets 4th Edition by Frederic Mishkin cover

The Economics of Money, Banking and Financial Markets 4th Edition by Frederic Mishkin

النسخة 4الرقم المعياري الدولي: 978-0133859997
تمرين 10
The demand curve and supply curve for one-year discount bonds with a face value of $1,000 are represented by the following equations:
B d : Price = -0.6 × Quantity + 1140
B s : Price = Quantity + 700
Suppose that, as a result of monetary policy actions, the Federal Reserve sells 80 bonds that it holds. Assume that bond demand and money demand are held constant.
a. How does the Federal Reserve policy affect the bond supply equation?
b. Calculate the effect of the Federal Reserve's action on the equilibrium interest rate in this market.
التوضيح
موثّق
like image
like image

Equilibrium is a situation where demand ...

close menu
The Economics of Money, Banking and Financial Markets 4th Edition by Frederic Mishkin
cross icon