Suppose the fed buys 100 million euros with federal reserve


Suppose the Fed buys $100 million Euros with Federal Reserve Notes and, at the same time, sells $100 million of U.S. government securities for cash in a domestic open market operation. What is the net effect on the monetary base? How has the Fed's balance sheet been affected?

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Econometrics: Suppose the fed buys 100 million euros with federal reserve
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