[Instant Help From 10$/Pg] Fed Buys Government Bonds
Answer this question in 100 words for each;
- What is the major argument in favor of an independent Fed?
- Why do Americans (and people around the world) continue to use the dollar as money considering that it is not backed by gold or anything else tangible?
- What are the advantages of an economy using money as opposed to a barter system of exchange?
- When the Fed buys government bonds what happens to the price of these bonds and the interest rate?
- If the quantity of money supplied exceeds the quantity of money demanded then what can you say about the current rate of interest and what bankers will likely do with the interest rates they charge? Why?
- What are the benefits and the costs to a nation of higher trade barriers? Which are greater: the benefits or the costs?
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