Briefly describe the effect on the money supply of the following monetary policies:

• The Fed purchases $20 million worth of U.S. Treasury bonds.
• The Fed increases the discount rate.
• The Fed decreases the discount rate.
• The Fed sells $40 million worth of U.S. T-bills.
• The Fed decreases the required reserve ratio.

Explain your response with specifics and provide examples.

In your replies:

• Share past experiences that may relate to your peers’ responses.
• If you found any of your peers’ tips or ideas useful, share them and explain why you might use them yourself in the future.
• Provide any input that may be useful in your peers’ initial post.

Cite and reference sources according to APA Style.

Justify your responses and be sure to correctly cite and reference your sources.

In addition to your main response, you must also post substantive responses to at least two of your classmates’ posts in this thread. Your response should include elements such as follow-up questions, further exploration of topics from the initial post, or requests for further clarification or explanation on points made.

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