How will treasury bond to chase bank in the secondary market

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Reference no: EM13231979

The Fed sells $100,000 in Treasury Bonds to Chase Bank in the secondary market.

a) What happens to the monetary base as a result?

b) If the reserve requirement is 20%, c=0.5 and e=0.001, what happens to the money supply as a result?

c) What happens to the federal funds rate as a result?

Reference no: EM13231979

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