18 Describe whether each of the following situations represents defensive open-market operations, dynamic open-market operations, or neither.

a The Fed purchases $40 billion of securities in the open market on September 11, 2001, when a number of major banks face disruptions in their New York operations.

b The Fed reduces the monetary base by

$5 billion through open-market sales because inflation has been rising.

c The Fed increases the monetary base by

$3 billion because of increased demand by people who want to collect new state quarters.

d The Fed raises the discount rate by half a percentage point.

e The Fed increases the monetary base by

$7 billion because a financial crisis in South America increases the demand for U.S. dollar currency that is shipped abroad.