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    US is influenced

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    Please help me research how the United States is influenced by actions taken by central banks in Asia and Europe and give an example of how the People's Bank of China (China's central bank) would impact the United States if it were to purchase $50 billion in U.S. Treasury securities.

    Subject is Fiscal Policy and Government Bond Markets.

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    https://brainmass.com/business/finance/usa-influenced-382604

    Solution Preview

    United States is influenced by actions taken by central banks in Asia and Europe. If the Bank of China were to purchase $50 billion in US Treasury securities, the long term US interest rates will increase and the value of the dollar will fall compared to the Chinese currency. On the other hand if Bank of China decided to sell $50 billion in US Treasury securities, the long term US interest rates will decline and the value of the dollar will increase (2) ...

    Solution Summary

    This response presents a brilliant discussion on how US is influenced. Fiscal policy and government bond markets are determined.

    $2.19

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