What would happen to the monetary base

Reference no: EM13261254

What would happen to the monetary base if the U.S. Treasury collected $4 billion in taxes, which it deposited in its account at the Fed, and the Fed bought $2.5 billion in government securities? Do you know now why the Fed and Treasury try to coordinate their operations in order to have minimal effects on the financial markets?

Reference no: EM13261254

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