Compute the change in the monetary base

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Suppose that the Fed conducts an open-market purchase of $1,500 in securities from the nonbank public. The Fed pays for these securities using currency, which the nonbank public holds in the form of cash. Show how this transaction affects the liabilities and assets of the Fed and the nonbank public on the T-accounts. Compute the change in the monetary base and enter this value as your answer. Include a minus ("-") sign to indicate a negative value and enter a "0" to indicate no change.

Reference no: EM13887135

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