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If the Fed conducts open market sales (selling bonds in the open market), the equilibrium value of money decreases and the equilibrium price level increases. True/False ?

Sagot :

If the Fed conducts open market sales, the equilibrium value of money decreases and the equilibrium price level increases. The given statement is true.

Market Sale refers to a sale for the most likely price in cash, terms that are equivalent to cash, or in other clearly disclosed terms, for which the real estate will sell in a competitive and open market under all conditions necessary to a fair sale, with the buyer and seller acting prudently, knowingly, and assuming that the price is not affected by undue stimulus. In addition, we simultaneously entered into an Open Market Sale Agreement with Jefferies LLC, which outlines the terms and conditions for the periodic "at-the-market" offers of our common stock under the 2018 Shelf, with a maximum aggregate offering size of $100.0 million.

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