Answer to Question #81433 in Finance for Anna

Question

Would someone who owns a car dealership Most Likely prefer that the government by bonds or sell them? Explain

Answer 1

If the government buy bonds, then the money supply increase will lead to a fall in interest rates, and lower interest rates will also increase investment, economic activity and inflation.
If the government sell them, then the money supply decrease and will lead to a fall in interest rates, so investment, economic activity and inflation will decrease.
That's why someone who owns a car dealership most likely prefer that government buy bonds