Changes on monetary base

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

a) The Treasury writes 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.

Reference no: EM1314347

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