Which of the following reflects the order of operations when the Fed buys bonds on the open market?a. Money supply increases, interest rates decrease, investment spending increases, AS shifts right. b. Money supply decreases, interest rates increase, investment spending decreases, AD shifts left. c. Money supply increases, interest rates increase, investment spending increases, AD shifts right. d. Money supply decreases, interest rates increase, investment spending decreases, AS shifts left. e. Money supply increases, interest rates decrease, investment spending increases, AD shifts right.

Reflection of order of operations when the Fed buys bonds on the open market:

a. Money supply increases, interest rates decrease, investment spending increases, AS shifts right.

Explanation:

When the Federal Reserve buys bonds on the open market, the action increases the money supply in the banks.  This allows banks to increase loans, and investors will increase investments.  It also increases the price of government securities and effectively reduces their interest rates, thereby decreasing the overall interest rates while promoting investments.

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.