ASSUME: you are a member of the Board of
Governors of the Federal Reserve System. The economy is
experiencing a sharp and prolonged inflationary
trend. State the appropriate change (increase, decrease,
buy bonds, sell bonds) in monetary policy, using the
following quantitative monetary tools, you would recommend to
achieve the legal mandate to the Federal Reserve of maintaining
full employment and stable prices. State in each case how
the change you advocate would affect commercial bank reserves, the
money supply,...