Question

7. If the institution receives less for the sale of the bonds, what happens to the...

7. If the institution receives less for the sale of the bonds, what happens to the economy, investments and jobs.
​Economy​HELPS / HURTS
​Investments​MORE / LESS
​Jobs​MORE / LESS

Homework Answers

Answer #1

If the institution receives less from the sale of bonds then

The economy will be hurt, definitely because the income will reduce and this will affect the economy badly. The outcome will not be desirable in this situation.

Investments will be less and it will decrease as the sale of bond did not yield as much was desired so they will have to decrease their investments as they do not have any income source through bonds.

Jobs will be less, the bonds did not yield anything and investments are less so job opportunities could not be created as required and there is lack of funds too, therefore job opportunities will be reduced.

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