there are 4 questions please anwser if each question is true or false.Apart from risk components, several macroeconomic factors-such as Federal Reserve (the Fed) policy, federal budget deficit or surplus, international factors, and levels of business activity-influence interest rates. Based on your understanding of the impact of macroeconomic factors, identify which of the following statements are true or false: Statements True False O During the credit crisis of 2008, investors around the world were fearful about the collapse of real estate markets, shaky stock markets, and illiquidity of several securities in the United States and several other nations. The demand for U.S. Treasury bonds increased, which led to a rise in their price and a decline in their yields. The larger the federal deficit, other things held constant, the higher are interest rates If the Fed injects a huge amount of money into the markets, inflation is expected to decline, and long-term interest rates are expected to rise. The Federal Reserve Board has a significant influence over the level of economic activity, inflation, interest rates in the United States.

Respuesta :

The given statements are related to the Macroeconomic factors of a country.

A -- The demand for U.S. Treasury bonds increased, which led to a rise in their price and a decline in their yields

Ans. The statement is True. As the interest rate falls, credit becomes more accessible and society's liquidity, or money supply, increases.

B -- The larger the federal deficit, other things held constant, the higher are interest rates

Ans. The statement is False . As a result of the consumers having more liquidity options, there would be increased inflation, which will raise prices.

Since the objective in this situation is to supply liquidity to the market, it is believed that the interest rate will decline; however, if inflation increases, the expectation will alter. This claim is False.

C -- If the Fed injects a huge amount of money into the markets, inflation is expected to decline, and long-term interest rates are expected to rise.

Ans. The statement is  True . Therefore, in order to aid in the improvement of supply, the national Central Banks will attempt to support the production sector by lowering interest rates in the short term.

D -- The Federal Reserve Board has a significant influence over the level of economic activity, inflation, interest rates in the United States.

Ans. The statement is false .The FED's ability to raise or lower interest rates is a crucial weapon, therefore its impact on other countries' economies is not constrained. The Federal Reserve adopts the measures necessary to maintain price stability over the long term while concentrating on the US economy.

What is macroeconomics?

The study of broader economic patterns, such as inflation, GDP growth rates, price levels, national income fluctuations, and changes in unemployment rates, is known as macroeconomics.

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