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Net effect of these two transactions on the monetary base

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1. Assume that you contribute $260 per month to a retirement plan for 20 years. Then you are able to increase the contribution to a $520 per month for another 30 years. Given a 7.2% interest rate, what is the value of your retirement plan after the 50 years?

2. The Fed sold $1.2 billion of mortgage backed securities. At the same time, the U.S. trasury collected $5.6 billion of taxes and deposited them with the Fed. What is the net effect of these two transactions on the monetary base?
The net effect is _____________

Reference no: EM131835333

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