answersLogoWhite

0


Best Answer

The purchase of bonds reduces the bond buyers' bank accounts.

User Avatar

Wiki User

10y ago
This answer is:
User Avatar
More answers
User Avatar

Wiki User

9y ago

don't spend lot of money that cause increases.government is political but there has a lot of people that money curropt

This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Which best explains why the money supply is decreased when the government issues bonds?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

How decreased blood supply effect muscle activity?

Decreased blood supply in the muscle can cause anoxia then paralysis.


What is the term for decreased blood supply?

Ischemia is the medical term meaning decreased blood supply. Prolonged ischemia can lead to infarction.


What is a decreased supply of oxygenated blood to tissue?

apoxia


Why does kid with acute bronchiolitis has delayed capillary refill?

Decreased oral fluid intake, decreased fluid volume, decreased circulating volume, decreased supply and perfusion to peripheries to maintain vital organ requirements


Explain the law of supply in your own words?

Law of supply: If demand is held constant, an increase in supply leads to a decreased price, while a decrease in supply leads etc


Technology key challenges issues in supply chin managemanttechnology key challenges issues in supply chin managemant?

Yes.


What is most likely to occur if The US government passes laws which lower the amount of olive oil a company can produce in order to save olives?

scarcity due to decreased supply and set prices


What are the effects of tobacco on athletics in sports?

Decreased air supply, and lower metabolism.


Why was it important for the states to have a central government?

for dealing with issues that effect all parts of the country equally national defense the monetary supply control of national borders


How does Reagonomics relate to today?

Reaganomics, or the more proper name, Supply Side Economics as described by Robert Mundell for his 1999 Nobel Prize award in for Economics, does indeed relate today. While is not simple there is a simplistic way to look at it. The government role is to raise or lower taxes and raise or lower interest rates in combination that will either stimulate or dampen economic growth in conjunction with the business cycle. The main factors of the business cycle are the cost of resources and the costs of manufacturing a product or providing a service. Economics abides by one rule, the rule of supply and demand. A description of the business cycle can begin anywhere in the cycle and experience the same results. This description will limit it to tangible goods and start with decreasing unemployment. Increasing employment increases demand. Increased demand requires an increase of supply. An increase in supply requires more employment. Until Supply is less than demand. Shortages occur and prices rise. Rising prices cause a decrease in the demand. Decreased demand requires decrease in supply. Decreased supply requires a decrease in employment. Decreased employment cause a decrease in demand. Decrease in demand cause excessive supply. Excessive supply requires decreased employment. Decreased employment causes less demand. Until Demand is less than supply. Overages occur and prices fall. Falling prices cause increases in demand. Increasing demand requires increased supply. Increased supply requires increased employment. Increase in employment increases demand. I hope you have the gist of it by now. If the economy is growing too rapidly causing inflation to rise to rapidly the government can increase taxes or raise interest rates to check the growth. If the economy is slowing, the government can lower taxes or interest rates to stimulate growth in the economy. This is the essence of supply side economics. The thermostat in your home is not instantaneous and neither is the application of correction by the government. Personally, I would prefer the government stay within the confines of the Constitution where they belong.


What happens to a supply curve if a tax on a good is repealed?

The supply curve of that good will increase or move to the right because the cost of production will have decreased.


What has the author Aruna Sivakami written?

Aruna Sivakami has written: 'Paradoxes in issues of water governance' -- subject(s): Government policy, Water, Water-supply, Pollution