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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

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%).

  1. Treasury finances the budget deficit of $100mnby selling a bond to the public.
  2. Treasury finances the budget deficit of $100mnby selling a bond to the Fed.
  3. A bank obtains a discount loan of $100mnfrom the Fed.
  4. A bank borrows from the Federal Funds Market (from another bank) a loan of $100mn.

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