Calculate the change in the monetary base

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The following events happens in order: 1. Fed bought $100M in bonds from Bank A 2. Bank A then use $40M to buy bonds from bank B, and lend out $60M to a person A 3. Bank B holds everything as excess reserves. Person A withdraw $5M. Calculate the change in the monetary base, the change in money supply (M1), the money multiplier after three events.

Reference no: EM131084894

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