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Impact of given changes on monetary base.

Compute the effect of the following events on the monetary base:

a) The Treasury prepares checks to Social Security recipients for $600 million.

b) The Federal Reserve buys a new fleet of cars for $8 million.

c) The Treasury transfers $500 million from its tax and loan accounts to its account with the Federal Reserve.

d) The Federal Reserve buys $1400 million of Treasury bills in the open market.

e) The Federal Reserve sells $1.5 billion of its German bonds for euros.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M921600

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