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1. Show the changes in T accounts of the Fed, Treasury, Banks and the Public resulting from the following transactions, and explain the impact on

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1. Show the changes in T accounts of the Fed, Treasury, Banks and the Public resulting from the following transactions, and explain the impact on the monetary base and money supply (required reserve ratio is 10%). a. Treasury finances the budget deficit of $100 mn by selling a bond to the public. b. Treasury finances the budget deficit of $100 mn by selling a bond to the Fed c. A bank obtains a discount loan of $100 mn from the Fed. d. A bank borrows from the Federal Funds Market (from another bank) a loan of $100 min

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